https://www.taxtmi.com/manuals?id=873 Retrenchment compensation is exempt from salary tax subject to the statutory cap and the applicable computation rule. The deductible amount is limited to the least of the compensation received, the amount computed under section 25F(b) of the Industrial Disputes Act, and the amount notified by the Central Government, while compensation under a Government-approved scheme is exempt to the extent of the amount received. Amounts in excess of the limit are taxable as salary, with relief available under the relevant relief provision. en-us Fri, 07 Aug 2015 14:49:00 +0530 Fri, 26 Jun 2026 10:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/manuals?id=873 Retrenchment compensation is exempt from salary tax subject to the statutory cap and the applicable computation rule. The deductible amount is limited to the least of the compensation received, the amount computed under section 25F(b) of the Industrial Disputes Act, and the amount notified by the Central Government, while compensation under a Government-approved scheme is exempt to the extent of the amount received. Amounts in excess of the limit are taxable as salary, with relief available under the relevant relief provision. Manuals Income Tax Fri, 07 Aug 2015 14:49:00 +0530 https://www.taxtmi.com/manuals?id=873