Tds on salaries
This query is : Resolved
CA SHASHI KUMAR CG
(Querist)
12 June 2013
Dear Experts,
1. Our client has made settlements for about 120 employees during 2012-13 F.Y. which includes Gratuity, Retrenchment Compensation, Leave Encashment, Other settlement amounts. All above compensation will exceed basic exemption limit before claiming Section 10 Exemptions. Do we need to issue Form 16 by filing TDS returns to all workers?
2. How much is the maximum exemption limit for Retrenchment compensation? Is it Rs. 50000/- or Rs. 500000/-?
Thanks in advance.
1. Our client has made settlements for about 120 employees during 2012-13 F.Y. which includes Gratuity, Retrenchment Compensation, Leave Encashment, Other settlement amounts. All above compensation will exceed basic exemption limit before claiming Section 10 Exemptions. Do we need to issue Form 16 by filing TDS returns to all workers?
2. How much is the maximum exemption limit for Retrenchment compensation? Is it Rs. 50000/- or Rs. 500000/-?
Thanks in advance.
CA Kapil Verma
(Expert)
12 June 2013
Basic exemption limit of 5,00,000.
CA SHASHI KUMAR CG
(Querist)
12 June 2013
Mr. Verma,
The following provision says maximum is Rs. 50000/-. Could you please provide me the reference data for Rs. 500000/-?
Section 10[(10B) any compensation received by a workman under the Industrial Disputes Act, 1947 (14 of 1947), or under any other Act or Rules, orders or notifications issued thereunder or under any standing orders or under any award, contract of service or otherwise, 74[at the time of his retrenchment :
Provided that the amount exempt under this clause shall not exceed—
(i) an amount calculated in accordance with the provisions of 75clause (b) of section 25F of the Industrial Disputes Act, 1947 (14 of 1947) ; or
76[(ii) such amount, not being less than fifty thousand rupees, as the Central Government may, by notification77 in the Official Gazette, specify in this behalf,]
whichever is less :
The following provision says maximum is Rs. 50000/-. Could you please provide me the reference data for Rs. 500000/-?
Section 10[(10B) any compensation received by a workman under the Industrial Disputes Act, 1947 (14 of 1947), or under any other Act or Rules, orders or notifications issued thereunder or under any standing orders or under any award, contract of service or otherwise, 74[at the time of his retrenchment :
Provided that the amount exempt under this clause shall not exceed—
(i) an amount calculated in accordance with the provisions of 75clause (b) of section 25F of the Industrial Disputes Act, 1947 (14 of 1947) ; or
76[(ii) such amount, not being less than fifty thousand rupees, as the Central Government may, by notification77 in the Official Gazette, specify in this behalf,]
whichever is less :
CA Kapil Verma
(Expert)
12 June 2013
sir please refer
Notification No. 10969 [F. No. 200/21/97-IT(A-I)], dated 25-6-1999.
the amount rs 50000/- is raised to 5 Lac.
Notification No. 10969 [F. No. 200/21/97-IT(A-I)], dated 25-6-1999.
the amount rs 50000/- is raised to 5 Lac.
CA Kapil Verma
(Expert)
12 June 2013
sir please refer
Notification No. 10969 [F. No. 200/21/97-IT(A-I)], dated 25-6-1999.
the amount rs 50000/- is raised to 5 Lac.
Notification No. 10969 [F. No. 200/21/97-IT(A-I)], dated 25-6-1999.
the amount rs 50000/- is raised to 5 Lac.
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