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Posting as :
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You are currently posting as works at

So every month they are considering your ctc 9LPA for tds i.e.,2k. Which won't cover your bonus. So as and when your bonus are credited the tax on it will be calculated as per your tax slab and deducted accordingly.

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Tax for one time payments are calculated at the highest tax slab?

So whats bothering you. 7k is correct. Is u take 20percent of 38000 it will be 7600. The income tax above 5lpa is 20 percent.

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@oracle 1
When I said highest tax slab, I meant my highest tax slab. Not the overall tax slab

Its not like that but it will clubbed with ur overall income. So suppose ur total income came out 6lpa after taking benefits of 80c and hra and standard deduction. So when the company give bonus it will become 6.38lpa. so now the tax will be calculated on that and they will adjust the tds for that month.

helpful

This is almost correct. I have an elss mutual fund sip for 3000 per month, 20000 for parents health insurance and 20000 per year in LiC pension scheme . Since I started the SIP the tds has come down to around 1700-1800

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