Tds applicable or not

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This query is : Resolved

manisha (Querist)

29 March 2017 Dear Sir,

Our Company given us gift as 1 grams gold coin to each employee , In such cases company need to deduct the TDS total value is Rs.54000/-

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)

29 March 2017 Since the same is in nature of casual income for employees and same is of more than 10000 Co. need to deduct TDS @ 30%

manisha

manisha (Querist)

30 March 2017 Sir, Can you give me any supporting for the same. Our Company showing this as staffwelfare Expenses with full amt.
Is it ok from Income tax department or we have to pay the tax on the same.

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)

30 March 2017 Actually staff welfare is totally different thing, Expenses incurred on welfare of staff for business purpose (which are of daily nature and minimal amount) should be classified as staff welfare but in your have mentioned that co. gives 1gm coin to each employee as gift which is a very large amount the same cannot be classified as staff welfare and TDS should be deducted on same.

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