My query is related to income tax. there is a dispute between two parties. they come to a settlement for a specific amount. what tax is deducted if the disputed amount is paid under the terms of dispute settlement. and what provisions of IT act are applicable.
the dispute is like this... the employee claimed some employee benfit from the employer. the employer refused. the employee sent alegal notice, in counter, the employer claimed some amount from the employee on account of damage done to company property. now both settled for an particular sum. so what will be the tax if the employer pays this sum to th empoyee.the employment has been terminated before this settlement
16 September 2011
I believe the TDS is required to be deducted by Employer on the amount it paid as part of settlement as employer is required to deduct tax on all amounts which it pays to the employees
CAclubindia
