unearned salary

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Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2010 if uneraned salary received on account of settlement under VRS scheme then would it be taxable?

will your answer be different if the employees is working under private concern or government concern.

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18 August 2010 Section 10(10C) of the Income-Tax Act, 1961 exempts payments received by a salaried employee from the employer under a Voluntary Retirement Scheme up to Rs 5 lakh. The law requires that the scheme should be framed in accordance with the guidelines prescribed in Rule 2 BA of the I-T Act. No relief is available if the scheme is not approved prior to the date of voluntary retirement. Subsequent approval will not entitle a retired employee to claim exemption. Guidelines for the scheme were framed under Rule 2BA which was inserted by the I-T (Sixteenth Amendment) Rules, 1992. The Rule prescribes that the scheme will be applicable to employees who have completed 10 years of service or reached the age of 40. It is also required that the scheme should result in overall reduction in the existing strength of employees. Vacancy caused by voluntary retirement is not to be filled up. The employee on retirement cannot be reemployed in any company under the same management.

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2010 this is applicable for Govt or non Govt or for both.

how the employee will get come to know abt the scheme.shd the scheme be approved from some one?

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18 August 2010 Applicable for both.Refer to,http://law.incometaxindia.gov.in/DIT/income-tax-rules.aspx

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2010 scheme should be approved from whom? pls suggest

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19 August 2010 Government of India