TDS Deduction

[mvs kumar]

Bonus decided by management in our company to pay in the current financial year to one of employee who separated by his resignation in last year. Do the company need to deduct TDS?

[YAGAY andSUN]

When in doubt, just deduct the TDS and deposit it to the exchequer within prescribed time limit.

[DR.MARIAPPAN GOVINDARAJAN]

Yes, definitely tax is to be deducted.

AI Summary

TDS deduction required on bonus to former employee; employer must deduct and remit within prescribed time. Employer must deduct TDS on a bonus paid to a former employee who resigned in the prior year and remit the deducted tax within prescribed time limits; when in doubt, deduct and deposit to ensure compliance.