Hi, i have been laif off from company and i got compensation mention as seperation, can i show under section 10(10c) to get tax benefit? ( my age:41 year).
2. Can i get benefit of both section 10(10c) and section 89?
I understand your concern about the tax implications of your separation compensation.
Under Section 10(10C) of the Income Tax Act, any amount received by an employee on voluntary retirement or separation is exempt from tax, subject to a maximum limit of Rs. 5,00,000. So, yes, you can show your compensation under this section to get a tax benefit.
However, please note that if you claim exemption under Section 10(10C), you will not be eligible for relief under Section 89. Section 89 provides relief when salary or compensation is received in arrears or advance, but it cannot be claimed in conjunction with the exemption under Section 10(10C).
So, in essence, you can get the benefit of either Section 10(10C) or Section 89, but not both. I would recommend consulting with a tax advisor to understand the best approach for your specific situation.
I hope this helps!