01 March 2015
I was working in Arvind Mill (Arvind Ltd) now the mill has been closed the employer paid me gratuity & Compensation. But there was deduction as tax of Rs.28880/- against Compensation Amt of Rs.403724/- I want to know that compensation of loss of employment is taxable or Tax free ?
01 March 2015
Compensation received in excess of 15 days wages for every completed year of service is taxable. However relief u/s 89(1) can be claimed.
Inference is from Section 10(10B)of the Income tax Act,1961 and section 25F(b) of Industrial Disputes Act,1947.
CAclubindia
