Severance pay

if employee designation is eligible for severance pay than it is not taxable.

it is nothing but arrears definitely it is taxable but relief under 89(1) can be claimed 

https://www.business-standard.com/article/pf/severance-pay-is-not-taxable-116040900764_1.H T M L

If the severance pay can be proved to be capital receipt, then its not taxable as per the article.