Tax deducted at source from total amount paid to former employee
16-Sep-2023 (In Labour & Service Law)
Can the employer who challenges in the Supreme Court the order for reinstatement of employee by the Industrial tribunal and the High Court deduct tax at source as being paid in the financial year from the lump sum payable to the employee being settlement of the employee as directed by the Supreme Court and the order of the Apex Court mentions only therein that the employee shall inform the employer on his tax planning within a week of the order.
The direction of court of law has to be interpreted in a strict manner. It has to be complied with as it is. If there is any vagueness in regard to such direction then clarification can be sought by way of application. A person can not employ ulterior tactics to frustrate the very idea behind the direction.
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