TAX TALK- 10.08.2009-THE HITAVADA
TAX TALK- 10.08.2009-THE HITAVADA TAX TALKBY CA. NARESH JAKHOTIA (Chartered Accountant) “NON RECEIPT OF T.D.S CERTIFICATE …………..” Query 1]Sir, we are working with a PSU. Kindly clarify whether group insurance compensation received from insurance company by staff is exempt from income tax or not? [N. Subramanian] Opinion: 1. Insurance compensation received under a group insurance scheme is not taxable in the hands of employee since it is a capital receipt.2. Further, if a person receives ex-gratia payment from the Central Government/ State Government/ Local Authorities/ or a Public Sector unit, consequent upon the injury to the person while on duty, such ex- gratia payment will not be liable to income tax. [Circular No. 776 dated 08.06.1999] Query 2] Sir, Kindly let me know whether deductee can claim credit when deductor did not issue or refused to issue Certificate for the Tax Deducted at Source. Is it not binding on the part of deductor to issue TDS Certificate? What steps can deducte...