Sir I have one doubt regarding above subject one employee has received 5 lakh and odd amount on his retirement as service pay & Gratuity as well & service pay considered as salary & deducted the tds on such amount as well.
So wanted to exemption under section 10(10)C or relief under section 89(1) can i go for either of the above & is it permissable under law..?
5 Replies
rama krishnan
(12244 Points)
Replied 28 July 2018
you can claim exemption under 10(10c) itself.. still there's no bar for claiming 89(1). however you can opt for any one of the above
Mahesh
(Student CA IPC / IPCC)
(67 Points)
Replied 28 July 2018
Sir I am receiving Gratuity also, & can I claim both Gratuity as well 10(10)C
rama krishnan
(12244 Points)
Replied 28 July 2018
depending upon the nature of retirement receipts, exemptions are allowed under various sub sections under section 10. you can avail those exemptions
Mahesh
(Student CA IPC / IPCC)
(67 Points)
Replied 28 July 2018
Retired on voluntary separation program(SYI) scheme
rama krishnan
(12244 Points)
Replied 29 July 2018
Section 10(10C)- Any Amount Received On Voluntary Retirement
Under Section 10(10C), any payment received by an employee at the time of his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of public sector company, a scheme of voluntary separation, is exempted being least of 4 amounts as mentioned below. This exemption shall be allowed if the employee voluntary retires from following bodies
A public sector company
Any other company
An Authority established under a Central, State or Provincial Act
A Local Authority
A Co-operative Society
A university established or incorporated under a Central, State or Provincial Act, or, an Institution declared to be a University under Section 3 of the University Grants Commission Act, 1956
Any Indian Institute of Technology within the meaning of Clause (g) of Section 3 of the Institute of Technology Act, 1961;
Such Institute of Management as the Central Government may by notification in the Official Gazette, specify in this behalf.
Any State Government ; or
The Central Government.
It may also be noted that where this exemption has been allowed to any employee for any assessment year, it shall not be allowed to him for any other assessment year. The exempton of amount received under VRS has been extended to employees of the Central Government w.e.f. Assessment year 2002-03 and State Government employees w.e.f. Assessment year 2001-02.
It shall be exempted up to least of following :
Statutory Limit ` 5,00,000.
Three months salary for every completed year of service.
Salary for number of months remaining service [i.e. number of months to be counted from the month of voluntary retirement to the month of actual retirement]
Actual amount received.
Under Section 10(10C), any payment received by an employee at the time of his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of public sector company, a scheme of voluntary separation, is exempted being least of 4 amounts as mentioned below. This exemption shall be allowed if the employee voluntary retires from following bodies
A public sector company
Any other company
An Authority established under a Central, State or Provincial Act
A Local Authority
A Co-operative Society
A university established or incorporated under a Central, State or Provincial Act, or, an Institution declared to be a University under Section 3 of the University Grants Commission Act, 1956
Any Indian Institute of Technology within the meaning of Clause (g) of Section 3 of the Institute of Technology Act, 1961;
Such Institute of Management as the Central Government may by notification in the Official Gazette, specify in this behalf.
Any State Government ; or
The Central Government.
It may also be noted that where this exemption has been allowed to any employee for any assessment year, it shall not be allowed to him for any other assessment year. The exempton of amount received under VRS has been extended to employees of the Central Government w.e.f. Assessment year 2002-03 and State Government employees w.e.f. Assessment year 2001-02.
It shall be exempted up to least of following :
Statutory Limit ` 5,00,000.
Three months salary for every completed year of service.
Salary for number of months remaining service [i.e. number of months to be counted from the month of voluntary retirement to the month of actual retirement]
Actual amount received.
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