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TDS on Non Compete Agreement

This query is : Open 
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(Querist)
08 April 2011 Firm "A" which is liable to Tax Audit is making payment of Rs. 10 lacs as non-compete agreement to one of its employees on his retirement.

My Query is whether the firm is liable to deduct TDS on the sum so being paid.

Regards
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CMA. Subhash Kumar Jha

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CMA. Subhash Kumar Jha (Expert)
08 April 2011 In my opinion, its a kind of compensation to the employee & should be taxed as salary.
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CMA. Subhash Kumar Jha

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CMA. Subhash Kumar Jha (Expert)
08 April 2011 However, other views are also welcome.

hence kept it open.
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