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
Menu
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.
Recent Topics :
- Clarify on GST Application
- Residential status for overseas students visitin
- Capital Gains Tax
- LTCG 112A and business loss
- FAST-DS 2026 applicability: foreign employee share
- NRI Property Sale in India: TDS Rates and Key Comp
- Clarification on September 2026 PF Calculation for
- DRC-03 interest paid under CGST/SGST instead of IG
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
Related Topics :
CAclubindia
