PARVEEN DAHIYA (181 Points)
26 August 2021
Abhishek Purohit
(52 Points)
Replied 26 August 2021
PARVEEN DAHIYA
(181 Points)
Replied 27 August 2021
Abhishek Purohit
(52 Points)
Replied 27 August 2021
PARVEEN DAHIYA
(181 Points)
Replied 27 August 2021
Pramod Limaye
(Chartered Accountant)
(172 Points)
Replied 28 August 2021
Circular No. 573, dated 21-08-1990 speaks about lump sum payment by the employer to the legal heir of deceased employee and it is exempt from tax. However, the circular is silent about salary or pension every month to the widow of deceased employee. It may not be taxable in the hands of widow since there is no relationship of employer and employee between the company and widow of the deceased employee. But this monthly payment might get disallowed as it cannot be said for the purpose of business.
Pramod Limaye
(Chartered Accountant)
(172 Points)
Replied 28 August 2021
I have clarified my view above, that it may not be taxable in the hands of widow since there is no relationship of employer and employee between the company and widow of the deceased employee. But at the same time, this monthly payment might get disallowed for the company as it cannot be said for the purpose of business. It will not be possible to prove the necessity of the expenditure for the purpose of business.
Pramod Limaye
(Chartered Accountant)
(172 Points)
Replied 28 August 2021
No. You cannot say it Family Pension. It is called Ex-Gratia only. However, as said earlier, it is likely to get disallowed for the Company.
Abhishek Purohit
(52 Points)
Replied 28 August 2021
PARVEEN DAHIYA
(181 Points)
Replied 29 August 2021
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