Has the exemption of amount received under VRS been extended to central and state government employees?
Has the exemption of amount received under VRS been extended to central and state government employees?
Yes. The
exemption of amount received under VRS is extended to all employees of the
Central Government w.e.f. Assessment Year 2002-2003 and for all State
Government employees w.e.f. Assessment Year 2001-2002.
The guidelines for tax exemption under VRS are as below: VRS applies to an employee of the company who has completed 10 years of service or 40 years of age. It is applicable to all employees and executives, except directors of a company. It must ...
The guidelines of VRS clearly state that handing out the golden handshake should result in overall reduction in the existing strength of the employees of the company. This means that even profit-making companies can use VRS to reduce the size of ...
Compensation on account of VRS is taxable as profits in lieu of Salary as per section 17(3) of the Income Tax Act. But in case of VRS by employees of Government/Semi-Government/Local Authorities/PSUs etc, this compensation is exempt up to the amount ...
Yes, the salary received would be taxable in India. If a citizen of India renders services outside India, and receives salary from the Government of India, it would be taxed in the same manner as Salary accrued in India. (Sec. 15 & 9, Income Tax Act)