The country’s general budget will be presented on February 1. Those people who take premature retirement i.e. VRS also have expectations from this budget. Let us know how much tax the government employees who have taken VRS have to pay in the news below.
The general budget of the country will be presented on February 1. This budget is going to be very special for the economy recovering from the Corona epidemic. However, the fear of recession is also haunting the world. In such a situation, the situation will be clear in a few days regarding what roadmap the government brings for the common people as well as the economy.
From the employed to the people of every class, there are some special expectations from this budget. This also includes those people who are thinking of taking voluntary retirement i.e. VRS or have already taken it.
According to the tax rules so far, if a government employee takes voluntary retirement ie VRS before the time of retirement, then the amount received by him is tax free up to Rs 5 lakh. One thing to note here is that tax exemption is limited to government employees only. If the amount received by him is more than 5 lakhs, then he will also have to pay tax according to the prescribed slab. This tax exemption is applicable only on the amount received under Voluntary Separation.
Tax exemption in VRS only once-
According to the rules and provisions of Income Tax, the employee who takes voluntary retirement gets tax exemption only once. Suppose if a government employee, after taking VRS from one place, does a job in another government company and then after some time takes voluntary retirement there too, then the benefit of tax exemption will not be available here. Means the employee gets the benefit of tax exemption only once.
Tax will be applicable on the amount above five lakhs.
How much tax will be charged on the amount received after VRS can be estimated in this way that if the employee receives an amount of five lakhs or less while taking voluntary retirement, then he will not have to pay any tax, but if the amount increases to six lakhs If it reaches, then he will have to pay tax on the amount of one lakh rupees. Now in this budget, whether the government brings anything new for the VRS takers, it will be clear on February 1.
