05 June 2018
please let me know what will be the tax implications in hands of legal heir of the ex employee on occassion of his death. the main concern is that the employee was not in service at the time of death means he has retired from service of the company two months before his death, but due to position held by ex employee in the company, the company has decided to give compensation to the wife of ex employee. kindly tell me whether the compensation received by widow is taxable or exempt in support with some case or section of income tax act.
CAclubindia
