A Public Company wants to give VRS Compensation to its employees. But it wants to claim the entire expenditure in the same year. As per Section 35DDA, VRS Compensation can be claimed as expenditure over a period of 5 years. Can the company make the payment in some other nature so as to claim the entire expense in the same year? If so, then in what nature can the company make the payment to its employees?
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Vrs compensation to employees
Replies (2)
Hi
You can pay as severance pay which is exempt to employees u/s 10C.
Thanks//VaibhavJ
Under Section 10(10C), VRS Compensation only is exempt in the hands of the employees and not Severence Pay.
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