Tds on ex-gratia payment in addition to normal salary
This query is : Resolved
08 April 2013
Hi All,
Please advise whether in the following case, TDS needs to be deducted at the time of payment only or can be deducted over a period of 12 months.
Mr. X is doing a job in ABC Ltd. his normal salary for FY 13-14 (net taxable income) is Rs. 7.5 lacs. He is paid Rs. 1 lac ex-gratia payment in the month of Apr-13. Since he is falling in 20% slab, TDS will be deducted in Apr-13 will be:
1. @ 20.60% on Rs. 1 lac + average TDS on normal income
2. Average TDS on 8.5 lacs
Thanks in advance.
Ramesh
Please advise whether in the following case, TDS needs to be deducted at the time of payment only or can be deducted over a period of 12 months.
Mr. X is doing a job in ABC Ltd. his normal salary for FY 13-14 (net taxable income) is Rs. 7.5 lacs. He is paid Rs. 1 lac ex-gratia payment in the month of Apr-13. Since he is falling in 20% slab, TDS will be deducted in Apr-13 will be:
1. @ 20.60% on Rs. 1 lac + average TDS on normal income
2. Average TDS on 8.5 lacs
Thanks in advance.
Ramesh
CA Neha Chauhan
(Expert)
08 April 2013
Dear,
Option 1 is the correct one
Regards,
Neha Chauhan
Option 1 is the correct one
Regards,
Neha Chauhan
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