one of my client has paid exgratia to his company employees without deducting TDS at the time of payment since the company going to closing down.
my question is ?
whether the payment of exgratia is allowed as expense or disallowed while calculating the tax liability of the company (because they are not deducted TDS).
TDS is applicable on the said amount, however you have to calculate TDS after allowing all exemptions & if no TDS is applicable after that then you dont have to worry.
CAclubindia
