Acciental injury to employee tds to deduct

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ankit (Querist)
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24 August 2011 Compensation Paid to employee(Become Peronsal Disability) Whether to deduct Tds on Compensation paid to Employee

Guest

Guest (Expert)

24 August 2011 yes, TDS is applicable on compensation

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ankit

ankit (Querist)
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24 August 2011 how & explain with case law and provison of income tax

we paid Rs. 3 lakhs to the employee for personal accident become disability

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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24 August 2011 Retrenchment compensation paid as per Industrial disputes act 1947 exempted as per section 10(10B)

Guest

Guest (Expert)

25 August 2011 Compensation has to be awarded by the Commissioner. The party has to approach the Commissioner for arriving at the compensation to be paid to be employee, who met with accident. Compensation is payable only when accident occurs during his work. In such case no TDS is required.

However, if Compensation is paid by employer other than what is awarded by the Commissioner, then it is taxable under head Salaries deducted u/s 192 (Salaries), on the amount of Compensation (excluding to the extent it is exempt)