Taxability of Severance Pay
This query is : Resolved
Quick Summary
Pooja Jogani
(Querist)
28 December 2020
Hi,
Please let me know if gratuity,leave encashment on termination, severance pay is taxable for the FY 2019-2020.
Employer has taxed and deducted TDS.
Please let me know if gratuity,leave encashment on termination, severance pay is taxable for the FY 2019-2020.
Employer has taxed and deducted TDS.
CA R SEETHARAMAN
(Expert)
28 December 2020
As per sec 10(10B) of the Income-tax Act, 1961, any retrenchment compensation received by a workman as defined in the Industrial Disputes Act is exempt from tax subject to maximum compensation of Rs5 lakh.
Leave encashment up to 3 lacs is exempt. Gratuity is exempt if paid as per gratuity act provisions.
Leave encashment up to 3 lacs is exempt. Gratuity is exempt if paid as per gratuity act provisions.
28 December 2020
Agrre with CA R SEETHARAMAN
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- Ito add credit side of bank
- Employee secondment
- GSTR9 Annual Return
- Applicability of tax on invoice
- Capital gain on commercial property and investment in residential property
- LLP audit and disclosure
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Gift to nri relatives resides in usa
- Rectification under processing even after 6 months cpc portal
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
