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Tds from company's point of veiw

TDS / TCS 540 views 1 replies

A very happy evening to all of you guys out there. Please help me out on this query at your earliest.

The question is -

A company is making a provision for leave encashment to provide for the retiring employees. Now my query is simple, how is the TDS to be treated here ? Does the company need to provide a provision for TDS on the above provision also ? Or does the company need to deduct the appropoate TDS on the provision amount or the more likely one is the company deducts TDS at the time of payment of Leave Encashment ?

 

Prompt reply will be much appreciated.

Thanks.

Replies (1)

Leave salary is considered as part of the salary.  Hence the provision of TDS applicable to sec192 are applicable for TDs on Leave Salary is required to be made at the time of making the payment towards Leave Salary.

Provision of Sec 43B are also requried to be complied with.  The deductionon account of Leave Salary will be allowed only on actual payment on or before the due date of filing the retunr u/s 139(1)


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