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So you have to pay taxes on your severance package as well?

Was talking to a friend of mine who got laid off early this year in January. While the org gave him 3 months salary additional to the leave encashment payment. He mentioned most of the amount was deducted in TDS as what was left for him was not even two months salary. Imagine someone who got laid off and is in dire need of money, He gets some severance from the organization and government eats majority of that as well? Absolute shitshow. IMO there should be some clauses to exempt this income from tax liability atleast in the same FY. You can ask him pay additional taxes when he gets the job but not on severance package.

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RustyWitty

Oracle

2 months ago

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zepto

Uber

2 months ago

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splender

Startup

2 months ago

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