Severance allowance taxable or non taxable

sachin (MBA) (32 Points)

04 February 2013  


I have been reading a lot whether severance allowance/pay is taxable or not..but cud not find a document stating that it is. Rather have been able to accessa report that says about tax policy of INDIA and SRILANKA, by Mukul G Asher , clearly stating that  "Under the income tax laws, the maximum retrenchment benefit exempted from  the income tax is Rs. 0.5 million (US$10,900). Any benefit above this amount is subject  to individual income tax" ..

need more clarity....