Retrenchment compensation [10(10B)]
Compensation received by a workman under Industrial Disputes Act, 1974 on retirement is exempt to the extent of least of the following amount.
- Actual amount of compensation received; or
- Amount notified by central government Rs 5,00,000; or
- Amount calculated in accordance with section 25F(b) of the Industrial Disputes Act, 1974.
25F(b) of Industrial Disputes Act, 1974 means 15 days average pay for every completed years of continuous service or any part thereof in excess of six months