Exgratia payment

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Harish kumar goud (Querist)

28 December 2013 Hai sir,

one of my client has paid exgratia to his company employees without deducting TDS at the time of payment since the company going to closing down.

my question is ?

whether the payment of exgratia is allowed as expense or disallowed while calculating the tax liability of the company (because they are not deducted TDS).

Please do needful as early as possible.

Thanking u in Advance

@VaibhavJ

@VaibhavJ (Expert)

28 December 2013 Hi Harish,

TDS is applicable on the said amount, however you have to calculate TDS after allowing all exemptions & if no TDS is applicable after that then you dont have to worry.

Thanks//VaibhavJ

Harish kumar goud

Harish kumar goud (Querist)

28 December 2013 All employees income has exceeded the basic exemption limit

Harish kumar goud

Harish kumar goud (Querist)

28 December 2013 Whether the expense is allowed or dis allowed as a expenses

@VaibhavJ

@VaibhavJ (Expert)

28 December 2013 Hi

Disallowance of expense on non-payment of TDS is not applicable to salary paid to a
resident employees.

Thanks

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