i hv 1 query plz reply ..
if employee take vrs after 25 yrs of service and balance service period is 7 years .. he receives compensation as follows
a. gratuity 600000
less exempt us 10 Rs. 200000
b. exgratia Rs. 2000000
how to compute taxable salary & how to calculate relief us 89 ???
plz reply
Menu
relief us 89 on vrs compensation
Replies (1)
FOR VRS COMPENSATION EXEMPTION UNDER 89 FOLLOWING PROCEDURE TO BE FOLLOWED.
1. CALCULATE TOTAL INCOME INCLUDING COMPENSATION EXGRATIA AND CALCULATE TAX.
2.DIVIDE TOTAL COMPENSATION AS 1/3RD AND ADD TO TOTAL INCOME OF LAST THREE YEARS CALCULATE TAX FOR LAST THREE YEARS.
3. NOW CALCULATE TAX DIVIDED BY TOTAL INCOME FOR EACH YEAR YOU WILL GET PERCENTAGE .
4 CALCULATE AVERAGE OF PERCENTAGE FOR THREE YEARS( /3).
5. APPLY RATE ON COMPENSATION.
6. DEDUCT TAX IN 5 FROM STEP 1
7.TAX RELIEF
1. CALCULATE TOTAL INCOME INCLUDING COMPENSATION EXGRATIA AND CALCULATE TAX.
2.DIVIDE TOTAL COMPENSATION AS 1/3RD AND ADD TO TOTAL INCOME OF LAST THREE YEARS CALCULATE TAX FOR LAST THREE YEARS.
3. NOW CALCULATE TAX DIVIDED BY TOTAL INCOME FOR EACH YEAR YOU WILL GET PERCENTAGE .
4 CALCULATE AVERAGE OF PERCENTAGE FOR THREE YEARS( /3).
5. APPLY RATE ON COMPENSATION.
6. DEDUCT TAX IN 5 FROM STEP 1
7.TAX RELIEF
Recent Topics :
- Free Pre-Filing Tool to Match GSTR-3B vs GSTR-2B (
- MR AASHOK KUMAR SHARMA
- NIC codes for FIRMS registration of entity
- Register on Income Tax as CA
- Deduction In Employee Provident Fund
- This is a gift for all Chartered Accountants and P
- NRI, ITR-2 FY 2025-26: AIS Part B2 (SFT) shows hig
- Wallet query for GST.
- 25-26 exempted sales
- Hotel stay below Rs.1000/- GST applicable or exemp
Related Topics :
CAclubindia
