Tds on notice period

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2015 whether TDS will be deducted on notice period if company give the amount on left the job of employee , and also another question is that from april to july and notice period amount is below 2.5 Lacs.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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31 July 2015 Notice period payment paid by the employer is taxable in the hands of employee so tds will be deducted, however while considering TDS you can consider the taxable limit, if the income is not exceeding you no need to deduct the TDS