I joined my company in June 2009. I have a bonus component in my salary which is payable on my appraisal after one year i.e June 2010. However my company has included this bonus component in my salary for TDS calculations. Accordingly tax has been deducted. When should the tax on the bonus be deducted acc. to Income tax laws? This year or next year since its payable in June 2010?

@ nikhilkale: To start with, bonus is included as salary income for income tax calculations. And as such, TDS on salary is deductible at the time of payment of salary. For more details, Section 192 (1) states as under:

'Any person responsible for paying any income chargeable under the head of income “Salaries” shall, at the time of payment of salary, deduct income-tax on the amount payable at the average rate of income-tax (computed on the basis of the income tax rates in force for the financial year) in which the payment is made, on his estimated income under this head for that financial year'.