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mpl tds policy In conclusion, bonuses are a significant part of many employees' compensation packages in India, and understanding their tax implications is vital. Though bonuses are taxed at the same rates as regular income, receiving a sizeable bonus can elevate your total income into a higher tax bracket. By leveraging deductions and strategic financial planning, employees can manage their tax liabilities effectively. Always stay informed about the current tax laws and consult a financial advisor for personalized guidance. This knowledge will empower you to make informed decisions regarding your bonuses and overall financial health.