Income Tax Exemption on Settlement under Sec 25F of ID Act
One of our client settling the employees cliam including settlement under Sec.25F of ID Act. Is such settlement is exempted from Income Tax. If yes, please advise on the provisions under Income Tax Act.
Hi, you have to refer to Section 10 (10B) of Income Tax Act, 1961. The exemption is permitted upto the minimum of following:
- The compensation received by workman,
- calculated on the basis provided in Section 25F(b) of Industrial Disputes Act, 1947
The maximum exemption limit is upto Rs. 5,00,000.
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