Dear CAs & Tax experts ,
How to avail full exemption of your severance pay received because of VRS/Termination ?
Severance pay is 16.9Lacs , u/s 10(10C) only 5 lacs is being exmepted , how to avail full exemption u/s 89 pls and How to fill up form-10E to get complete exemptions effectively ?
need help urgently pls , kindly respond !
Best Regards
For amounts exceeding Rs.5 lakhs , you can claim relief under section 89 by filing Form 10E. This provides tax relief by spreading the income over previous years for tax calculation purposes.
To fill Form 10E:
Calculate the tax relief by considering the spread of the severance pay over previous years.
Submit Form 10E along with your income tax return.
You can claim relief on the balance (Rs.11.9 lakhs) under Section 89 using Form 10E.
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