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

VRS payments to employees are taxable income; TDS applies under Section 192 of the Income Tax Act. A query was raised regarding whether Voluntary Retirement Scheme (VRS) payments to employees are subject to Tax Deducted at Source (TDS). The response clarified that VRS payments are considered income for the employee and are subject to TDS under Section 192 of the Income Tax Act.