hello I have lay off from job after 3 month of joining and the company paid me retrenchment compensation.
so can we claim exemption under retrenchment compensation any, if yes please elaborateand share your view
thank u
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Retrenchment compensation Received
Replies (1)
Whether company paid u retrenchment compensation or notice period salary??
if u received notice period salary then it is taxable otherwise u can claim exemption only if u worked in the company for a period of 240 days or more in 12 months but in your case it is 3 months ie 90 days only therefore u cannot claim.
Also u can checkout this article for detailed information
https://www.godigit.com/business-insurance/business-terms/retrenchment-compensation
if u received notice period salary then it is taxable otherwise u can claim exemption only if u worked in the company for a period of 240 days or more in 12 months but in your case it is 3 months ie 90 days only therefore u cannot claim.
Also u can checkout this article for detailed information
https://www.godigit.com/business-insurance/business-terms/retrenchment-compensation
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