Amortisation of expenditure incurred under Voluntary Retirement scheme - Section 35DDA

Amortisation of voluntary retirement expenditure: staged deduction permitted over successive years after actual payment.

Amortisation under Section 35DDA allows an assessee to deduct one fifth of any sum paid to an employee on voluntary retirement in each of five successive years beginning with the year of actual payment; installments are amortised independently, and on amalgamation, demerger or reorganisation the resulting Indian company succeeds to the provisions though no deduction is allowed for the year in which the transfer occurs.