WebApr 6, 2024 · Introduction. A Voluntary Retirement Scheme or VRS is a scheme that is offered by many companies to give employees the freedom to take voluntary retirement … WebAnswer (1 of 2): VRS amount may be partly taxable and partly exempt. Compensation received by an employee at the time of voluntary retirement is exempt to the extent of …
Income from Salary & Taxes - Guide - Learn by Quicko
WebWhether Cicular No. 573 ( Taxability of lump sum payment made gratuitously or by way of compensation or otherwise to widow/other legal heirs of an employee) ... I RETIRED FROM … WebAfter considering the case of both the parties, the learned Single Judge held that the persons who were officers and who retired under the VRS dated 21-5-1992, 5-6-1993, 9-4-1994, 20-6-1994 and 7-7-1994 are entitled to payment of additional ex gratia amount by recalculating the ex gratia amount on the basis of the revised pay plus allowances, on account of … major purposes of manpower management
Taxability of VRS Compensation – Exemptions
WebAug 3, 2024 · Employees working in the private sector can receive paid leave encashment at the time of retirement or resignation.Maximum tax exemption amount is Rs 3, 00,000 for the leave encashment otherwise the amount exceeding this value is taxable. The calculation of exempt leave encashment is as per section 10 (10AA) WebIn the hands of a Government employee Gratuity and PF receipts on retirement are exempt from tax. In the hands of non-Government employee, gratuity is exempt subject to the … WebMay 31, 2024 · You have to pay tax on severance pay. Additional compensation/ severance pay given by employer is taxed as ‘profits in lieu of salary’. But gratuity, retrenchment … major race meetings 2022