As per the service agreement between a government department (employer) and employee, in the event of death of the employee, a sum equivalent to salary is required to be paid to his family member till the retirement age of the deceased. Whether TDS would be required to be deducted on the said payment by the government employer to the family member of the employee? If yes, under which section?
Thanks in advance..
Family pension received by the dependents of the employee will be taxed under " income from other sources".
TDS is not deductible on family pension as it is not covered under Sec.192.
If the family pension received by the fanily members of armed forces then it is totally exempt.
Deduction is available under sec.57 for family pension:
in the case of income in the nature of family pension: Rs.15,000/- or 33.33 %of such income,
whichever is lower:
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