tax exemption on settlement amount after job loss

I lost my job in November (company asked me to resign immediately) and was given a lump-sum amount as settlement amount (2 months salary,i.e dec & jan, but my job terminated in nov) in April (next financial year). I want to know whether I have to add this settlement amount as income in next financial year or there is some clause in income tax rule for getting tax exemption on this amount. After termination I was jobless for almost 11 months.

Answers (1)

342 votes

Hi, You did not mentioned the settlement amount here. The income you receive from your company even if it is settlement then it is taxable income only. you can get in touch with me with your tax statement.


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