25 October 2011
As per section 192 of income tax act, TDS on salary provides that Any person responsible for paying any income chargeable UNDER THE HEAD SALARIES shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year. leave encashment in the hands of family is taxable under the head income from other sources.
only incomes chargeable under the head salaries liable for tds u/s192.
Hence no tds on leave encashment received by widow or legal hiers.
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