Whether the workmen compensation requires deduction of tax?If so, which provision says so? 
TDS on Workmen Compensation
Varun.T.K (CA Final, CS Executive) (365 Points)
27 March 2010
4 Replies
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 27 March 2010
No TDS on compensation, panalty.
Varun.T.K
(CA Final, CS Executive)
(365 Points)
Replied 27 March 2010
Is there any case laws/circulars/rules regarding non-applicability of TDS on workmen compensation payments?
Amir
(Learner)
(4016 Points)
Replied 27 March 2010
Dear Varun,
With due respect, I would say that TDS will be deducted u/s 192 (Salaries), on the amount of Compensation (excluding to the extent it is exempt)
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 27 March 2010
Retrenchment Compensation[Sec. 10(10B)]
Retrenchment compensation received by a workman under the
industrial Disputes Act, 1947 or any other Act or Rules is exempt
subject to following limits :-
(i) The sum calculated on the basis provided in section 25 F(b)
of the above Act.
(ii) The above is further subject to an overall limit of
Rs. 5,00,000.
The limits are not applicable where it is paid under a
scheme of Central Government for extending special protection
to the workmen
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