Deduction of income tax (TDS) on medical bills of BSNL Retired Employees at the time posting in SAP.
BSNL has now decided to discontinue the existing practice of deducting TDS at the time of posting of medical bill in the SAP and deduct TDS on Retirees Medicals Bills at the time of payment with effect from January 2021 (i.e. Q4 of F.Y. 2020-21) onwards.
Tax is to be deducted at the time of payment of salary, 1.e., tax is to be deducted at the time of ‘actual payment’ of salary. When the salary is only credited to the account of employee and is not actually paid to him, tax is not required to be deducted; tax will be deducted only at the time when salary is ‘actually’ paid to the employee.