Leave encashment- practicle problem
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 December 2011
Dear Sir,
A has gross salary of Rs. 1,70,000/- & co. paid him Rs. 10,000/- as leave encasement(still A is working for Co.) However Co. have not deducted tax at the time of payment of leave encashment. Are we require to deduct tax on these Rs. 10,000/- & if yes at what rate or as the gross salary is not exceeding the tax limit so no TDS is required.
2) While issuing Form 16 to employee should we include these 10000/- leave encashment to Gross salary .
Pls rply
Thanks:
Raju
A has gross salary of Rs. 1,70,000/- & co. paid him Rs. 10,000/- as leave encasement(still A is working for Co.) However Co. have not deducted tax at the time of payment of leave encashment. Are we require to deduct tax on these Rs. 10,000/- & if yes at what rate or as the gross salary is not exceeding the tax limit so no TDS is required.
2) While issuing Form 16 to employee should we include these 10000/- leave encashment to Gross salary .
Pls rply
Thanks:
Raju
CA PARAS BAFNA
(Expert)
16 December 2011
You have to include leave salary as a part of Gross Salary and if even after adding the leave salary , income of the employee is not
taxable, no need to deduct TDS on Salary in such case.
taxable, no need to deduct TDS on Salary in such case.
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