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Notice period payment: Whether TDS should be there

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(Querist)
02 June 2010 If we are paying notice period amount to an employee who is fired by the company without any intimation to him so in this case whether company should deduct the tax or not ......

Thanks,
Abhishek
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
05 June 2010 Yes.Even notice period payment also covered under Salary so need to deduct TDS

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