Can VRS exemption benefit be taken on accrual basis?

can VRS exemption benefit be taken on accrual basis?
Replies (2)
Quick Summary
This discussion explores whether Voluntary Retirement Scheme (VRS) exemption benefits can be claimed on an accrual basis, rather than just when the cash is received. A case study of a BSNL employee who received VRS compensation in two financial years is used to illustrate different tax calculation and exemption strategies. The core question is how to best manage the tax liability and claim the Section 10(10C) exemption when the full compensation isn't received in a single financial year.

In my view , yes you can claim benefits when you make available all the taxable and non taxable income in the return 

I am giving summary of the case study of a
Employee of BSNL, whom got VRS last year, and total VRS compensation compuated 10 lacs but he received only 3 lacs in last year and 7 lacs received in current financial year.

so what he should do in below options,

1. calculate tax on received amount 3 lacs and take exemption for 3 lacs under 10(10c) and pay tax on 7 lacs in next assessment year.

2. calculate tax on full 10 lacs and take exemption for 5 lacs under 10(10c) in current assessment year.

3.calculate tax on 5 lacs and exemption under 10(10c) for 5 lacs and calculate tax for remaining 5 lacs in next year.

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