Dear friends, due to financial crises, our organization has not paid our salary for 3 months. In the fourth month, the organization paid all 3 months' salary in one go and included Rs. 5000/- as a hardship allowance. The accountant has now informed us that they did not deduct TDS on the hardship allowance, and it will be deducted in the financial year 2016-17 from the next month's salary.
Could you please clarify how the accountant will deduct Rs. 500 (10%) TDS on the hardship allowance? Is this deduction applicable as per income tax rules?
Regards, Sharad Pant
From India, Poona
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1Could you please clarify how the accountant will deduct Rs. 500 (10%) TDS on the hardship allowance? Is this deduction applicable as per income tax rules?
Regards, Sharad Pant
From India, Poona
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Income tax Rules.xls
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf