Vrs payment sec. 35dda & 10(10c)

This query is : Resolved

N.GOVIND (Querist)
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16 April 2012 Dear Sir/s

ABC Company management is willing to pay Rs.3 Lac under VRS Scheme to one of their worker who is completed over 21 years of service.

1) Whether the Company is eligible to claim exemption u/s 35DDA (1/5th) or 100%?

2) Whether the Worker is eligible to calim exemption u/s 10(10C)?.

3) Whether the above Rules are applicable even if the scheme of Voluntary retirement (VRS) has not been framed in accordance with guidelines prescribed under section 10(10C).

Please clarify the above at the earliest.

Best Regards,

N.Govind.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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16 April 2012 co will be eligible for 35DDA deduction at 1/5 of amount in five instalments
employee will be entitled for exemption if the conditions of section 10(10C) are met
CA MANOJ GUPTA
JODHPUR
09828510543