Amount given upon death of employee.
This query is : Resolved
22 August 2007
A company has paid an amount to employee's family on death of the employee due to an illness. This amount does not from part of gratuity. My query is what will be the nature of payment in case of company?Whether TDS has to be deducted and if yes, under what head ? And from employee point of view, will it be in the nature of capital receipt, hence not taxable?
Kindly advice.
Kindly advice.
22 August 2007
I think TDS would be deducted u/s salary only. further company would also be liable for FBT...It would also be taxed in the hand fo recipients under other sources.
23 August 2007
how it is laible under fbt kindly explain along with relevant section or case law
23 August 2007
how it is laible under fbt kindly explain along with relevant section or case law
23 August 2007
how it is laible under fbt kindly explain along with relevant section or case law
24 August 2007
Only those expenditure should be included under employees welfare which are for the welfare of all employees or a group of employees and not for an employee as privileges, benefit, et. given to an employee. Hence, it should not be liable to FBT.
TDS is not to be deducted as this doesnot partake the character of salary.
It is not taxable in the hands of employees family as it is to be treated as capital receipt.
TDS is not to be deducted as this doesnot partake the character of salary.
It is not taxable in the hands of employees family as it is to be treated as capital receipt.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Fixe term employment
- GST ITC REVERSE
- Regarding Applicability of Tax Audit u/s 44AB
- Withdrawal in cash from partners capital account by partner
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Tds on commission charges
- TDS on TRUST
- Section 50-fixed asset-->building ceases to exist
- Consolidated financials
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
