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TAX RELIEF ON SEVERANCE PAY

TDS 691 views 1 replies

Hello FRIENDS, below are the details of the condition/situation,
1- Lay off declared across the globe.
2- In India under the same, few employees are impacted. For whom the below arrangement is made - 
 2A - They have asked to RESIGN, on April 3, 2025 and DOR was April 4, 2025.
 2B - Severance package is paid, which consists,
      - All statutory payment 
a- Salary from April1 to 4th 
b- Pay of balance Leaves
c- Notice period pay (as per the Notice period clause)
d- Retrenchment pay of 15 Days average/gross pay for each year of 
completed service.
e- 2.5 months salary (out of 1-4 months pay of impact)

Please GUIDE on TAX exemption on above.

 

Replies (1)

none of the above equalifies for any exemption except for the basic exemption limits available as per tax slab.


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