Section 10(10C) → Section 12
Exemption of amount received on Voluntary Retirement (VRS)
Quick Answer
Section 10(10C) of the Income Tax Act, 1961 (Exemption of amount received on Voluntary Retirement (VRS)) corresponds to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 10(10C)
Provision Summary
Exempts up to Rs. 5 Lakhs received by an employee at the time of voluntary retirement or termination of service.
Sec 12
Provision Summary
Retained. Applies to PSU, government, and private sector employees fulfilling specific criteria.
Key Changes & Highlights
- Cannot be claimed if relief under Section 89 has been taken for the same amount.
Related Sections
Frequently Asked Questions
What does Section 10(10C) of the Income Tax Act 1961 deal with?
Section 10(10C) (Exemption of amount received on Voluntary Retirement (VRS)) Exempts up to Rs. 5 Lakhs received by an employee at the time of voluntary retirement or termination of service.
What is the new section number for Section 10(10C) under the Direct Tax Code 2025?
Section 10(10C) of the ITA 1961 maps to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 10(10C) under the new tax code?
Section 10(10C) is marked as "Retained" with status "Active". Impact: High - Standard tax planning tool during corporate layoffs.
What are the key changes to Section 10(10C) under DTC 2025?
Cannot be claimed if relief under Section 89 has been taken for the same amount.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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