https://www.taxtmi.com/caselaws?id=353588 Ex gratia payment made under a settlement ending employment was treated as retrenchment compensation where the substance of the arrangement showed termination of service for consideration, despite wording that the employee stood resigned. The broad construction of retrenchment under the Industrial Disputes Act meant form could not override the real nature of the transaction, so the payment was capable of exemption under section 10(10B) of the Income-tax Act. The admissible exemption, however, is limited to the least of the actual receipt, the statutory ceiling, and the amount computed under section 25F(b), and the quantification required separate verification. en-us Tue, 02 Jan 2018 00:00:00 +0530 Tue, 05 Mar 2024 14:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=353588 Ex gratia payment made under a settlement ending employment was treated as retrenchment compensation where the substance of the arrangement showed termination of service for consideration, despite wording that the employee stood resigned. The broad construction of retrenchment under the Industrial Disputes Act meant form could not override the real nature of the transaction, so the payment was capable of exemption under section 10(10B) of the Income-tax Act. The admissible exemption, however, is limited to the least of the actual receipt, the statutory ceiling, and the amount computed under section 25F(b), and the quantification required separate verification. Case-Laws Income Tax Tue, 02 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=353588