Taxability of Severance Pay
This query is : Resolved
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28 December 2020
Hi,
Please let me know if gratuity,leave encashment on termination, severance pay is taxable for the FY 2019-2020.
Employer has taxed and deducted TDS.
Please let me know if gratuity,leave encashment on termination, severance pay is taxable for the FY 2019-2020.
Employer has taxed and deducted TDS.
28 December 2020
As per sec 10(10B) of the Income-tax Act, 1961, any retrenchment compensation received by a workman as defined in the Industrial Disputes Act is exempt from tax subject to maximum compensation of Rs5 lakh.
Leave encashment up to 3 lacs is exempt. Gratuity is exempt if paid as per gratuity act provisions.
Leave encashment up to 3 lacs is exempt. Gratuity is exempt if paid as per gratuity act provisions.
28 December 2020
Agrre with CA R SEETHARAMAN
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