variable component in salary

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.

asked Jul 09 '12 at 15:43 by rakesh7 1125

You can download income tax calculator and put your quarter component as performance bonus in the months in which these are expected.

answered Jul 10 '12 at 18:33 by Pankaj Batra 5.2k320

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.
(Jul 10 '12 at 20:44) 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.
(Jul 10 '12 at 20:54) Pankaj Batra
Thanks Pankaj for the reply.
(Jul 10 '12 at 22:31) rakesh7

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Asked: Jul 09 '12 at 15:43

Seen: 2,098 times

Last updated: Jul 10 '12 at 22:31