TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 March 2010 Whether tax has to be deducted at source in case arrear salary due to a deceased percon is paid to his son.

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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22 March 2010 i think yes

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 March 2010 Since there is no employer/employee relationship as far as the referred payment is concerned, there is no need to deduct tax.

CA Archana

CA Archana (Expert)
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22 March 2010 As Mr.chackrapani is saying there is no emlployer/employee relation..so its TDS deduction is not compulsory but as per the RBI guidelines (a few days before in TOI this case came) in case the bank is making the payment of even the pension to the person himself or his relative Bank is required to deduct tax at source unless until there is a certificate from the person showing the calculation of income with in the untaxable limit.It says the Banks should charge TDS to be on the safer side and to fulfill the guidelines requirements.So as per me Bank can deduct TDS.