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Query Details

Asked by Indulekha on :Apr. 05, 2020

Hari paid Rs 66,000 in cash to Shyam, his employe…

Hari paid Rs 66,000 in cash to Shyam, his employee, as a retrenchment compensation on the 5th of Se…

Hari paid Rs 66,000 in cash to Shyam, his employee, as a retrenchment compensation on the 5th of September, 2019.

Can he claim it as a deduction?

0

Kanishka Apr. 05, 2020

Yes, Hari can claim the expense.

Rule 6DD specifically allows deductions for retrenchment compensation paid in cash.

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