- No rebate will be available in income tax
- Tax will have to be paid even if you lose job
- Employees are getting beaten up
- New Delhi: Many companies have laid off due to CORONA PANDEMIC. Due to which many people have lost jobs. At the same time, many companies have given vrs i.e. voluntary retirement to their employees standing close to retirement. In this condition, many types of payments are also being given to unemployed people like Gratuity, VRS Allowances, Extra Salary. On hearing this, it seems that on the pretext of this, these people will be less worried about money, but in reality, these payments are the trouble of the people.Bank Fixed Deposits are not the safest, know its disadvantagesActually, income tax will have to be paid on these payments . Which simply means that there is a double whammy of people going to another job and other income tax burden. Let us tell you that under which section of the Income Tax Act (IT Act) people who lose jobs will have to pay income tax.
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Apart from salary, these payments are available
Under Section 17 (3) of the Income Tax Act, any employed person has to pay Income Tax on the payment (allowances) received in addition to salary from the company. Due to this law, you will have to pay tax on all the allowances which you will be given on behalf of the company, if you leave the job. If you have earned money in any other way after leaving the job, then you will have to pay tax on that income as well.Apart from everyday essentials, Amazon will also deliver alcohol, know when it will start
VRS offers discounts –
The amount paid up to 5 lakh rupees inclusive of all allowances during VRS is exempt from tax under Section 10 (C) of the Income Tax Act (IT Act). It is also to be noted here that VRS discounts are available only once. Apart from this, if the amount received in vrs is more than the salary of 3 months of the person, then it will also be taxable income.
Also, tell you that if you get the amount under the Industrial Disputes Act after withdrawing the amount from the job, then tax exemption can be availed on the amount of Rs 5 lakh.
