Tax on contribution of one day salary

This query is : Resolved

M.D.Ram

M.D.Ram (Querist)
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08 March 2010 Dear all,

FACTS:
One of the employee of a company dies in an accident in the office premises.
Employees of the company decided to provide one day salary as their contribution to the family of the employee who died in the accident.

Please advice on the TDS and other tax implication on the above transactions in the hands of the employees/company/and the receiving family.

Thanks in advance

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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08 March 2010 Sorry, No deduction is permissible for this noble contribution made by you under I. Tax Act,1961.