Tax treatment of employee retretchment/igaap accounting

Dear All,

Can any one tel me about the Tax Treatment and Accounting Entry under IGAAP/IFRS ?

Query No. 1:- Suppose Mr X has get retretchment/Retire before normal retirement from ABC Co. Ltd. and ABC Co Ltd Pay the compensation as below:- Mr X has normal Date of Retirement is 14.05.2018. Last Working Day in ABC Co. Ltd. is 31.08.2015. Tenure Left till retirement (In Month) Round off is 32 Months.payment such as Mr X has Gross Salary is Rs. 20086/-. ABC Ltd Pay compensation is Rs.645173/-(ie 20086 X 32 Months). Apart from this he received addition 1) Leave encashment Rs. 16219/-, 2) Bonus Rs. 4167/-, 3) LTA Rs. 1600/-, 4) Medical Insurance Rs.25182/-. 5) Gratuity Till retirement Rs. 296312/- out of which Rs. 20794/- Gratuity for tenure left (Which consider for IT Calculation only). on the basic of above payment ABC Co Ltd has deducted TDS Rs. 86653/- On the basis of above data, what is the tax liability? is Mr X has elligible to claim Relif under the IT Act on the amount so received as compesation for the Tenure Left till retirement .

Query No.2 Is the entire amount paid by the ABC Co Ltd is charges to Profit or Loss Account or it has been amortise over the periods till the date of Normal retirment ? What is accounting Guidlines or Accounting treatment under Ind IAS (IGAAP) and under IFRS ?

The tax calculation is attached for kind persual.

Best Regards,

Mahesh Kumar

Mob No. 9431927282

Attached File : 1452295 20151031103547 mr x tax calculation.xlsx downloaded: 126 times

Originally posted by : Mahesh Kumar
	Dear All, Can any one tel me about the Tax Treatment and Accounting Entry under IGAAP/IFRS ? Query No. 1:- Suppose Mr X has get retretchment/Retire before normal retirement from ABC Co. Ltd. and ABC Co Ltd Pay the compensation as below:- Mr X has normal Date of Retirement is 14.05.2018. Last Working Day in ABC Co. Ltd. is 31.08.2015. Tenure Left till retirement (In Month) Round off is 32 Months.payment such as Mr X has Gross Salary is Rs. 20086/-. ABC Ltd Pay compensation is Rs.645173/-(ie 20086 X 32 Months). Apart from this he received addition 1) Leave encashment Rs. 16219/-, 2) Bonus Rs. 4167/-, 3) LTA Rs. 1600/-, 4) Medical Insurance Rs.25182/-. 5) Gratuity Till retirement Rs. 296312/- out of which Rs. 20794/- Gratuity for tenure left (Which consider for IT Calculation only). on the basic of above payment ABC Co Ltd has deducted TDS Rs. 86653/- On the basis of above data, what is the tax liability? is Mr X has elligible to claim Relif under the IT Act on the amount so received as compesation for the Tenure Left till retirement . Can Exeption u/s 10(10B)allowed ? Query No.2 Is the entire amount paid by the ABC Co Ltd is charges to Profit or Loss Account or it has been amortise over the periods till the date of Normal retirment ? What is accounting Guidlines or Accounting treatment under Ind IAS (IGAAP) and under IFRS ? The tax calculation is attached for kind persual. Best Regards, Mahesh Kumar Mob No. 9431927282