Income Tax Exemption on Settlement under Sec 25F of ID Act - Professionals - Taxation - TIK Share
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Income Tax Exemption on Settlement under Sec 25F of ID Act


Dinesh Achari

2015-04-13

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.

CA Pulkit Sharma

2015-04-14

Hi, you have to refer to Section 10 (10B) of Income Tax Act, 1961. The exemption is permitted upto the minimum of following:

  1. The compensation received  by workman,
  2. calculated on the basis provided in Section 25F(b) of Industrial Disputes Act, 1947
  3. 500,000

The maximum exemption limit is upto Rs. 5,00,000.

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Dinesh Achari

2015-04-14

Many thanks for the clarification.

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CA Pulkit Sharma

2015-04-14

You are most welcome. Keep using tikshare and ask your friends too!!!

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