variable component in salary

rakesh7 11
Viewed 1420

Hi Pankaj,

I have a variable component(QPLC - Quarterly Performance Linked Compensation) in my salary stack, which is paid out quarterly. So I would like to know how to calculate my taxable income per annum taking this variable component into consideration.

performance-linked variable-component quarterly-bonus taxable-income income-tax
1 Answers
Pankaj Batra5212

Thanks Pankaj but the major concern is how to predict the variable component. For instance, in some months it can be 100% & in other months it can be 0% also. Should I take the max/min case in order to find the taxable income? Please clarify my doubt.

rakesh7•

There is no need to compute income tax on amount which is yet to be received and not finalized. Advance tax payment rules also does not apply to such payments as TDS is deducted on such payments.

Pankaj Batra•

Thanks Pankaj for the reply.

rakesh7•
Related