<h1>Delhi High Court: Performance Incentives Exempt from Estimated TDS Deduction u/s 192, Company Not in Default.</h1> The Delhi High Court ruled that performance incentives, due to their variable nature dependent on a company's annual performance, are not fixed mandatory payments and thus cannot be subjected to TDS deduction on an estimated basis under Section 192. The court found that the respondent company was not in default for short deduction of TDS related to these incentives, as it was a case of short deduction for bona fide reasons rather than non-deduction. Consequently, Section 201 (1A) is not applicable, affirming that the company acted within legal boundaries regarding TDS on performance incentives.