Laid off? Here’s how your severance pay will be taxed

  • Press Release|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 20 November, 2020

April 16, 2020

Naveen Wadhwa, Deputy General Manager at, said:


However, if the severance pay is in accordance with the provisions of Industrial Dispute Act, 1947, then the employee is entitled to an exemption of up to 5 lakh as per section 10(10B) of the Income Tax Act. “It is to be noted that Industrial Dispute Act, 1947, doesn’t apply to employees who are working in a managerial or administrative capacity or employed in a supervisory capacity and draw wages exceeding 10,000 per month.”

Read the Full Article at livemint : Laid off? Here’s how your severance pay will be taxed

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