Whether the workmen compensation requires deduction of tax?If so, which provision says so? 
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TDS on Workmen Compensation
Replies (4)
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
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