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of <h1>Taxable Portion of Voluntary Retirement Compensation: Rs. 2,00,000 as Per Section 10(10C) and Rule 2BA Guidelines.</h1> An individual received voluntary retirement compensation of Rs. 7,00,000 after over 30 years of service, with 6 years remaining. At retirement, the individual earned a basic salary of Rs. 20,000 per month plus a dearness allowance of Rs. 5,000. Under Section 10(10C) and Rule 2BA, the maximum permissible compensation is calculated as Rs. 22,50,000 or Rs. 18,00,000. The least of these calculations, Rs. 5,00,000, is exempt from tax. Thus, the taxable portion of the voluntary retirement compensation amounts to Rs. 2,00,000, derived from subtracting the exempt amount from the total compensation received.
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