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VRS Compensation Disbursement Schedule
The compensation is split into two equal 50% phases.
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VRS - Member Calculator
With the Member Calculator, you enter information to estimate your retirement benefit, including average final compensation, age, months of service, date you expect to retire and a benefit payout option.
Taxability of VRS Compensation - Exemptions - BankBazaar
Check FREE Credit Score Introduction:On sequestration, a government employee is usually entitled to a lot of retirement benefits, which is why government jobs are considered to be the most secure and much sought-after. But these perks are not tax-free. This is clearly specified under the heading 'Salaries' as returns in the place of of salaries as mentioned in section 17 (3) of the Indian Income Tax Act. Nevertheless, with regard to a few of them, being exempted from tax is allowed under section 10 of the law, either completely or partially.Let us explore the exemptions in detail:Gratuity (Section 10 (10)):Any demise plus post retirement gratuity availed by Central and State Government staffs, Defense staffs and the same in local authority will be excused.Any gratuity availed by people under the Payment of Gratuity Act (1972) shall be exempted which is conditional on the certain restrictions. The first one is that for each year of service or part thereof, gratuity shall be waived off for up to fifteen days remuneration based on the previous salary rate. The next limitation is that the amount of gratuity must not be more than INR 10 lacs.For employees belonging to other categories, gratuity is exempted on a couple of conditions such as it being restricted to salary of 15 days (on the basis of past ten months' average) for each service year with INR 10 lacs as the set limit.According to the Board's letter F. No. 194/6/73-IT (A-1), which was dated on 6th June 1973, the waiver regarding gratuity is allowed even in cases of employment cessation or resignation. The taxed part of gratuity is eligible for relief u/s 89 (1).Gratuity disbursement to a widow and/ or other legatees of any staff member who passes away while in service is also excused from income tax as mentioned in Circular Number 573 dated on 12st August 1990.Compensation on VRS OR 'Golden Handshake' (Section 10 (10-C)):Money given to any worker of public sector or any other firms, authority established under Central, State or Provincial Act, Co-operative Societies, Local Authority, Universities, IITs and Notified Management Institutes etc.VRS under which the disbursement is being made should be enclosed in line with the recommendations in the Rule 2BA of Income Tax Rules. In the event of an organization other than a government one or a co-operative society, this scheme had to be authorized by the Chief Commissioner/ Director General of Income Tax until 2002.If tax-exemption is permitted under this se...
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First phase of VRS compensation for ex-CEB employees by May 15 ...
Minister of Ports, Civil Aviation and Energy Anura Karunathilaka said compensation for Ceylon Electricity Board (CEB) employees who applied for retirement under the Voluntary Retirement Scheme (VRS) following the dissolution of the CEB is expected to be paid in two phases. Responding to a question in Parliament, the Minister said 50% of the total compensation will be provided under the first ...
