- Applicability: All assesses
- Conditions:
- The retirement should be in accordance with the scheme of voluntary retirement.
- The payment can be made in any year, each such payment independently being admissible for amortization over a period of five years.
- Deduction: The amount of expenditure so paid will be allowed in 5 equal installments commencing from the previous year in which such payment / part payment was made.
- Business Re-organization: In the following cases of business reorganization, the deduction will be allowed as under
Nature Assessee entitled to deduction Years of deduction
Amalgamation Amalgamated company From the year of amalgamation or de-merger or business reorganization.
De-merger Resulting company
Partnership firm or proprietary concern converted into company New company - No other deduction: No deduction will be available under any other section in respect of expenditure incurred under this section.
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