TDS on Workmen Compensation

No TDS on compensation, panalty.

Is there any case laws/circulars/rules regarding non-applicability of TDS on workmen compensation payments?

Dear Varun,

With due respect, I would say that TDS will be deducted u/s 192 (Salaries), on the amount of Compensation (excluding to the extent it is exempt)

Retrenchment Compensation[Sec. 10(10B)]

Retrenchment compensation received by a workman under the

industrial Disputes Act, 1947 or any other Act or Rules is exempt

subject to following limits :-

(i) The sum calculated on the basis provided in section 25 F(b)

of the above Act.

(ii) The above is further subject to an overall limit of

Rs. 5,00,000.

The limits are not applicable where it is paid under a

scheme of Central Government for extending special protection

to the workmen