HELP ON Urgent basis req.deduction of TDS

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This query is : Resolved

pradeep (Querist)

02 February 2011 We are a multi unit company. In one of our unit we have done one time settlement with four employees at one fixed amount of Rs.2.6 Lacs. This settlement is towards Wages, Bonus, Gratuity and EL. Wages pertain to last three years.

There has been a dispute with these 4 workers in court and now company has entered into one time settlement with all of them paying Rs. 2.6 Lacs each to them.

Please let us know,

What amount of TDS is deductible,

Any deduction can be given not to deduct any TDS.

Guest

Guest (Expert)

02 February 2011 Deduction as per total salary all such employees will be deducted Deduction 80C etc. can be allowed

CA Mahendra modi

CA Mahendra modi (Expert)

11 June 2011 As Wages, Bonus and EL all are fully taxable, so TDS will be deductaible on above as per applicable slab to respective employee.

Portion of Gratuity is exempt as calculated by specified procedure in Income Tax Act, so that exempted amount will not be taxable and consequently TDS will not be deducted.

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