02 December 2011
Rule 6DD:-Cash payment exceeding Rs20,000/-
(h)where any payment is made to an employee of the assessee or the heir of any such employee on retirement, retrenchment, resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed fifty thousand rupees;
Conclusion:- cash payment can be made on retirement...............and not exceeding Rs.50,000/-
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