Maternity leave encashment

[SURYAKANT MITHBAVKAR]

Whether TDS to be deducted while paying maternity leave engagement. In short it is taxable income in hands of recipient.

[Ganeshan Kalyani]

In my view it is taxable.

[DR.MARIAPPAN GOVINDARAJAN]

The wages paid to maternity leave amount to salary and liable for deduction of tax at source.

AI Summary

Maternity leave encashment taxable as salary, requiring tax deduction at source when paid by the employer. Cash payment for unused maternity leave is treated as salary and constitutes taxable income for the recipient; such maternity leave encashment is liable to tax deduction at source when paid by the employer.