Is severance package taxable?

An employee of a private software company was asked to resign on 6th March 2019 with immediate effect after serving for 1.25 years. He got a severance package of 5 months salary and ex gratia on 29th March.

The company has deducted tax at 30%.

Is this amount eligible for exemption u/s 10(10b)?

Replies (1)
No... It's taxable in the hands of the Employee...

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