Income Tax Act, 2025
Section 9: Subs. by Act 4 of 1988, s. 6, for sub-clause (ii) (w.e.f. 11989).
9. Subs. by Act 4 of 1988, s. 6, for sub-clause (ii) (w.e.f. 11989).
73
Explanation.—For the purposes of this clause—
(a) compensation received by a workman at the time of the closing down of the undertaking
in which he is employed shall be deemed to be compensation received at the time of his
retrenchment;
(b) compensation received by a workman, at the time of the transfer (whether by agreement
or by operation of law) of the ownership or management of the undertaking in which he is
employed from the employer in relation to that undertaking to a new employer, shall be deemed
to be compensation received at the time of his retrenchment if—
(i) the service of the workman has been interrupted by such transfer; or
(ii) the terms and conditions of service applicable to the workman after such transfer are
in any way less favourable to the workman than those applicable to him immediately before
the transfer; or
(iii) the new employer is, under the terms of such transfer or otherwise, legally not liable
to pay to the workman, in the event of his retrenchment, compensation on the basis that his
service has been continuous and has not been interrupted by the transfer;
(c) the expressions “employer” and “workman” shall have the same meanings as in the
Industrial Disputes Act, 1947 (14 of 1947);]
1[(10BB) any payments made under the Bhopal Gas Leak Disaster (Processing of Claims) Act,
1985 (21 of 1985), and any scheme framed thereunder except payment made to any assessee in
connection with the Bhopal Gas Leak Disaster to the extent such assessee has been allowed a
deduction under this Act on account of any loss or damage caused to him by such disaster;]
2[(10BC) any amount received or receivable from the Central Government or a State Government
or a local authority by an individual or his legal heir by way of compensation on account of any
disaster, except the amount received or receivable to the extent such individual or his legal heir has
been allowed a deduction under this Act on account of any loss or damage caused by such disaster.
Explanation.—For the purposes of this clause, the expression “disaster” shall have the meaning
assigned to it under clause (d) of section 2 of the Disaster Management Act, 2005 (53 of 2005);]
3[(10C) 4[any amount received or receivable by an employee of]—
(i) a public sector company; or
(ii) any other company; or
(iii) an authority established under a Central, State or Provincial Act; or
(iv) a local 5[authority; or]
6[(v) a co-operative society; or
(w.e.f. 11989).
73
Explanation.—For the purposes of this clause—
compensation received by a workman at the time of the closing down of the undertaking
in which he is employed shall be deemed to be compensation received at the time of his
retrenchment;
compensation received by a workman, at the time of the transfer (whether by agreement
or by operation of law) of the ownership or management of the undertaking in which he is
employed from the employer in relation to that undertaking to a new employer, shall be deemed
to be compensation received at the time of his retrenchment if—
the service of the workman has been interrupted by such transfer; or
the terms and conditions of service applicable to the workman after such transfer are
in any way less favourable to the workman than those applicable to him immediately before
the transfer; or
the new employer is, under the terms of such transfer or otherwise, legally not liable
to pay to the workman, in the event of his retrenchment, compensation on the basis that his
service has been continuous and has not been interrupted by the transfer;
the expressions “employer” and “workman” shall have the same meanings as in the
Industrial Disputes Act, 1947 (14 of 1947);]
1[
any payments made under the Bhopal Gas Leak Disaster (Processing of Claims) Act,
1985 (21 of 1985), and any scheme framed thereunder except payment made to any assessee in
connection with the Bhopal Gas Leak Disaster to the extent such assessee has been allowed a
deduction under this Act on account of any loss or damage caused to him by such disaster;]
2[
any amount received or receivable from the Central Government or a State Government
or a local authority by an individual or his legal heir by way of compensation on account of any
disaster, except the amount received or receivable to the extent such individual or his legal heir has
been allowed a deduction under this Act on account of any loss or damage caused by such disaster.
Explanation.—For the purposes of this clause, the expression “disaster” shall have the meaning
assigned to it under clause
of section 2 of the Disaster Management Act, 2005 (53 of 2005);]
3[
4[any amount received or receivable by an employee of]—
a public sector company; or
any other company; or
an authority established under a Central, State or Provincial Act; or
a local 5[authority; or]
6[
a co-operative society; or