Hey @TeamQuicko
My father received some compensation for his voluntary retirement. Can he claim a deduction of INR 5,00,000 for this compensation while filing ITR?
Hey @HarshitShah
VRS Compensation is taxable as profits in lieu of Salary as per section 17(3) of the Income Tax Act. Any employee of the government or local authority or PSU or any other company etc, is eligible to claim a deduction u/s 10(10C) up to INR 500,000/- if certain conditions are complied with and the scheme is framed as per Rule 2BA of Income Tax Rules.
It is to be noted that this exemption can be claimed only once in a lifetime.
Hope this helps! 