## Deduction for Voluntary Retirement Scheme (VRS) — Section 35DDA
### Idea
When an employer pays compensation to employees under a Voluntary Retirement Scheme, the payment is allowed as a deduction — but, like preliminary expenses, it is spread over 5 years rather than allowed all at once.
### Rules
1. Applicability: Any assessee making payment to employees under a VRS.
2. Amount & timing: The actual expenditure is allowed in 5 equal instalments, commencing from the year of payment (1/5th each year).
3. Exclusivity: No deduction for this expenditure is allowed under any other provision of the Act.