Taxability of benefit paid to legal heir in case of death

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2017 Dear Experts,

We are a company which needs to paid unpaid salary,gratuity , pl encashment, additional gratuity ,pf etc to legal heir of employee in case of death. In regards I like to know following
1. Whether all benefits are exempted form income tax or some of the benefits like unpaid salary and additional gratuity is taxable?
2. If taxable than to calculate tds liability whom tax status would be considered legal heir or deceased.
3. If tds deducted than whom name tds to be deposited and whom name form 16 to be issued legal heir or deceased employee.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 February 2017 1 Unpaid salary and Gratuity exceeding 10 lacs is taxable.
2 Consider the TDS in the hands of deceased.
3 Deposit TDS and issue form 16 in the name of the deceased.

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