10 October 2024
We paid a salary of Rs. 1,41,000 in cash this year to one of our employees. He is not on our payroll and bank transfer list. Now he is leaving the company. Mgt decided to pay Rs 2,50,000 as end-of-service/retirement benefits to him as he worked hard and sincerely during his tenure. So the total payment this year is Rs. 3,91,000. Is TDS applicable in this case?
Can we take a new regime of taxation limit to decide the TDS deduction limit or to take old regime limit ? Can we reduce the Standard deduction and other savings u/s 80C to decide the limit for the TDS deduction?
10 October 2024
If you consider new tax regime the 80C dedcution is not allowed. Consider standard deduction, TDS will not be applicable considering rebate.
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