tax exemption for compensation package received

Hi, If a person if getting laid off from a company for business reasons(closure of units/shutdown), and the company is giving a fixed amount as severance package,are there any indian tax rules by which he can claim tax exemption for the same amount. If so could you point me to the same?

asked May 12 '11 at 04:44 by ronzie43 1111


Hi

Compensation received at the time of separation/retrenchment is exempt from tax upto the maximum of Rs. 5 lacs u/s section 10(10C) and 10(10B) respectively.

answered May 12 '11 at 05:27 by sagar 4012

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Asked: May 12 '11 at 04:44

Seen: 2,217 times

Last updated: May 13 '11 at 03:39