CA Nayan Gupta (Finance Manager Overcart.com) (1695 Points)
25 May 2015As per the service agreement between a government department (employer) and employee, in the event of death of the employee, a sum equivalent to salary is required to be paid to his family member till the retirement age of the deceased. Whether TDS would be required to be deducted on the said payment by the government employer to the family member of the employee? If yes, under which section?
Thanks in advance..
Sriram
(CMA Final)
(178 Points)
Replied 25 May 2015
Family pension received by the dependents of the employee will be taxed under " income from other sources".
TDS is not deductible on family pension as it is not covered under Sec.192.
If the family pension received by the fanily members of armed forces then it is totally exempt.
Deduction is available under sec.57 for family pension:
in the case of income in the nature of family pension: Rs.15,000/- or 33.33 %of such income,
whichever is lower:
CAclubindia
