Taxability of Severance Pay
This query is : Resolved
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.
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
- TDS DEMAND.
- 139(4) for ITR-5- audit
- TDS-Fixed assets
- Joint Account Closure
- RCM PAID ON RENT IN RESTAURANT BUSINESS @ GST RATE 5%
- TDS can We Adjust 194C Amount to 194J
- Registartion of trust
- NATURE OF PENALTY AND INTEREST UNDER TAXATION
- Reversal of unutilized ITC can be paid through ITC
- Mentioned xyz as employer name instead of xyz LLC in ITR
Trending Online Classes
-
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Industry Expert14 February 2025 -
Survey, Search and Seizure under Income Tax Act 1961
CA Hari Agarwal
CAclubindia
