I am entitled to the compensation from the employer on account of VRS in a particular year but have received the same in the succeeding years in instalments. When is it taxable?
I am entitled to the compensation from the employer on account of VRS in a particular year but have received the same in the succeeding years in instalments. When is it taxable?
In terms of section 15 and 17(3)
the VRS compensation has accrued in the year in which your right to receive the
same became crystallised. Therefore, the entire compensation will be taxable in
the first year when it became due.
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 ...
The compensation of VRS is computed by the authority as per the scheme framed by them. The amount receivable by the employee on account of voluntary retirement should not exceed: i) the amount equivalent to 'three months’ salary for each completed ...
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 ...
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.
Section 15 of the Income Tax Act contains all the conditions in which the income received or accrued can be classified under ‘Salary’ for tax treatment. It also tells us how the tax thereon should be paid. Section 17 defines what incomes will be ...