Did you get a bonus this year or are you due for one soon? A bonus amount at the end of the financial year from your company can make you excited. But remember that your job doesn’t end when you get the amount.
Reporting your salary income in your Income Tax Return (ITR) is usually a breeze if you have your Form 16. You can easily locate the details that must be reported in your ITR. Salaried taxpayers usually face hurdles while reporting income earned other than salary, such as bonuses from their employer or when they win a lottery or a prize.
The usual questions that confound are whether this money is taxable, if yes then under which head it must be reported and how much tax must be paid on it. Let’s understand this in more detail.
Bonus of any type such as performance linked, sales target linked, ratings linked and incentive schemes are fully taxable.
Source: Hindustan Times
