Reward to Employees's Children

[Pradeep Jain]

Dear Sir,

As per agreement with Union , reward is paid by the company to the Children of Operator who has got more than specified percentage . The same is paid on Annual day of the Company. Some time cheque is given in the name of Children of Employee or in the name of employee ?

The amount of reward paid as mentioned above attract TDS liability on the Employee ?

Regards

Pradeep Jain

[DR.MARIAPPAN GOVINDARAJAN]

n my view TDS is not required.

AI Summary

TDS on employee benefits may not apply where a company pays rewards to an employee's children under agreement.
Company pays annual rewards under a union agreement to children of an operator, sometimes by cheque in the child's name or the employee's name. The issue raised is whether such payments attract TDS liability on the employee. The respondent's brief reply states that, in their view, TDS is not required on these payments.