Please state that whether VRS payment to employees is subject to TDS

[MINGUR Dorjee]

Please state whether VRS payment to Employees is subject to TDS, If yes, under which section?

[Ganeshan Kalyani]

VRS payment is an income in the hands of the employee. Tds is deductible under section 192 of the Income Tax Act.

AI Summary

TDS on VRS payments applies; employers must deduct tax at source from employees' VRS income under income tax law. VRS payment received by an employee is treated as income and attracts an obligation on the employer to deduct TDS at the time of payment; tax must be withheld from VRS receipts under the income tax framework.