Eligible expenditure – Expenditure by way of payment of any sum to an employee in connection with his voluntarily retirement, whether or not the scheme has been framed in accordance with guidelines prescribed under section 10(10C).
Amount of deduction – 1/5th of the amount paid for eligible expenditure
Period of deduction – Deduction under this section is on payment basis. Deduction is allowed for a period of 5 years starting from the year in which payment is made. Each part of the payment is deductible in 5 years in equal instalments.
If deduction is allowed under this section, then deduction is not allowed for such expenditure under any other provisions of the Act.