Deduction Of Rs 500-TDS On Hardship Allowance

Sharad Pant
Dear friends,
Because of financial crises our organization has not paid our salary for 3 months. In fourth month the organizaiton paid all 3 months salary in one go and paid Rs. 5000/- as a hardship allowance additionally. Now accountant informed that they have not deducted TDS on Hardship allowance and the same will be deduct in the financial year 2016-17 from next Month salary.
Can you please inform, how Accountant is deducting Rs. 500 (10%) TDS on hardship allowance, is it applicable as per income tax rule?
Regards.
Sharad Pant
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