Experts,
I have confusion from the pvt organization's employer side , is it possible to pay the gratuity amount and Voluntary Retirement
(VRS) amount together before the actual retirement date. Actually we want to give Voluntary Retirement to an employee and want to pay an eligible gratuity amount and some other amount as VRS ,so first I want to know whether we can pay both together or pay vrs amount in another name, second please suggest another head/name for VRS amount ....
Thanks
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Gratuity and VRS Can be paid together by emoployer
Replies (1)
Summary: Employers can and often do pay both gratuity and VRS compensation together at the time of an employee's exit. These are separate line items in a settlement—gratuity is a statutory entitlement, and VRS is a voluntary separation package—and each qualifies for its own specific tax exemption under the Income Tax Act.
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