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.
The most tax affected ppl are only and only the employees and middle class PPL who are honestly earning hard earned money. We are the employees who work hard and earn money but this govt keeps an eye on our income whatever it is and takes out our money by the name of tax....then what is the use of we working hard and being honest to the company/govt. To secure our CIBIL and honest tax payers?? What benefits we are getting from our govt. In return??? So sad ðŸ˜
Is Desh m kuch acha hota bhi hai. Sabko govt lut Rahi hai bas apni Jeb bharne k liye.