A widow received a lump sum payment equivalent to three years' salary from her late husband's government employer, covering the remainder of his service period before retirement. Tax was deducted at source (TDS) on this amount. The core question is whether this payment is taxable in the widow's hands, especially as it was received after the employee's death, contrasting with typical exemptions for post-death lump sums.
20 September 2020
Sir, A lady received 3 years salary as lumsum payment from the government department where his husband was working and his husband was expired before his retirement and there was 3 years remaining in his retirement age so the department gave his wife 3 years salary and also deduct TDS on that after his dealth for the remaining period of job Please suggest the taxability of this salary amount received in the hand of widow of employee.
20 September 2020
But this salary is received in the hand of widow after the death of employee as after the death lumsum amount received from employer is exempt