Hi freinds,
A Company Paid compensation of Rs. 500,000 to the family of its employee who died while on duty. The matter was settled out of court. What are the tax implications?
Regards,
Dharmendra kumar (CA) (201 Points)
12 June 2012Hi freinds,
A Company Paid compensation of Rs. 500,000 to the family of its employee who died while on duty. The matter was settled out of court. What are the tax implications?
Regards,
CA Mukul Mittal
(CA in practice)
(384 Points)
Replied 12 June 2012
the amount paid by the company on the death of employee may be taxed in the hands of the legal hires of the deceased.
i am not too sure, let others write their views.
anish
(student)
(43 Points)
Replied 13 June 2012
i think if its a ex gratia payment ,will not b taxed in d legal heirs hand...........
Dharmendra kumar
(CA)
(201 Points)
Replied 13 June 2012
Whether the compensation paid will be allowaable expense to the company?
anish
(student)
(43 Points)
Replied 13 June 2012
yes it is..subj it is paid prior to 31/9...43(a) ..payment basis....
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