Tds on gratuity
This query is : Resolved
16 April 2012
Dear All,
If gratuity is paid by LIC of India out of fund maintained by the employer of the employee with LIC of India. Is TDS attracted on such gratuity payments? If Yes, Who is supposed to deduct TDS on such payment of gratuity made? whether the employer or LIC of India.
It may be noted that the employee is receiving the gratuity benefit directly from the LIC of INdia out of fund.
If gratuity is paid by LIC of India out of fund maintained by the employer of the employee with LIC of India. Is TDS attracted on such gratuity payments? If Yes, Who is supposed to deduct TDS on such payment of gratuity made? whether the employer or LIC of India.
It may be noted that the employee is receiving the gratuity benefit directly from the LIC of INdia out of fund.
16 April 2012
Basically. Gratuity in excess of the limits prescribed is added in salary income and employer only is responsible for deduction of tax on Salary Income.
LIC will not deduct TDS. However, the amount is deposited on the basis of actuarial valuation basis and it is maintained to that extent on which no tax is required to be deducted.
Let us see the procedure of Claim settlement by LIC:
1. On the exit of an employee due to retirement / death/ resignation, trust may prefer a claim from LIC by sending a claim form.
2. Claim amount will be made available to trustees. Trustees can have the following options-
a. Preferring a claim from LIC and paying to employee
.
b. Paying the money to employees and seek reimbursement
.
c. Paying claims to employees at their end and seeking annual reimbursement.
.
LIC will not deduct TDS. However, the amount is deposited on the basis of actuarial valuation basis and it is maintained to that extent on which no tax is required to be deducted.
Let us see the procedure of Claim settlement by LIC:
1. On the exit of an employee due to retirement / death/ resignation, trust may prefer a claim from LIC by sending a claim form.
2. Claim amount will be made available to trustees. Trustees can have the following options-
a. Preferring a claim from LIC and paying to employee
.
b. Paying the money to employees and seek reimbursement
.
c. Paying claims to employees at their end and seeking annual reimbursement.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- House Property Reporting in ITR
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- TDS Challan Code
- Two seprate Invoice needed
- Internship/Academic shown in Salary Pay Slip of a Doctor
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
