Settlement amount - tax saving

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Aricle Asst.
151 Points Posted on 17 March 2023
Hello Everyone.,
one of my client's is on contract based job., recently govt issued a notification as making their jobs as permanent... now they are settling his past service by paying 20 lakhs...
how to save tax on this.
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On 17 March 2023 at 12:30 Report
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Quick Summary
A client on a contract job is receiving a £20 lakh settlement due to their role becoming permanent. The query is about how to save tax on this amount. Suggestions include investing in tax-saving instruments like LIC, PPF, or NSC under Section 80C, or treating the settlement as professional income under Section 44ADA and showing receipts.

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n/a
500 Points Posted on 17 March 2023

You can invest the settlement amount in tax-saving instruments such as LIC, PPF or NSC to avail of deductions under Section 80C.

 

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On 17 March 2023 at 16:05
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49 Points Posted on 17 March 2023
Show Receipts as professional income and section 44ADA will help you to save tax.
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On 17 March 2023 at 20:28

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