Whether TDS to be deducted while paying maternity leave engagement. In short it is taxable income in hands of recipient.
Maternity leave encashment
SURYAKANT MITHBAVKAR
Maternity Leave Encashment Taxable: TDS Applies to Wages as Salary Under Tax Rules A query was raised regarding the tax implications of maternity leave encashment, specifically whether Tax Deducted at Source (TDS) should be applied. Two responses were provided. The first response suggested that maternity leave encashment is taxable. The second response confirmed that wages paid during maternity leave are considered salary and are subject to TDS. (AI Summary)