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?
1 Answers
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.
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