Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: empanelment :: cpt :: list of goods taxed at 4% :: articles on VAT and GST in India :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT Audit :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: TDS :: due date for vat payment
 
 
From the Courts »
 Pr CIT vs. Shri Mahila Sewa Sahakari Bank Ltd (Gujarat High Court)
 Pr CIT Vs. PPC Business And Products Pvt Ltd (Delhi High Court)
 Commissioner Of Income Tax Central-Iii Vs. M/s. Radico Khaitan Ltd.
 Mastech Technologies Pvt. Ltd Vs. Dy. Commissioner Of Income Tax
 Pr. Commissioner Of Income Tax Central-3 Vs. Surya Vinayak Industires Ltd.
 Pr. Commissioner Of Income Tax Central-3 Vs. J.H. Business India Pvt. Ltd.
 CIT vs. Bhushan Steels And Strips Ltd (Delhi High Court)
 Sumana Bandyopadhyay vs. DDIT (Calcutta High Court)
 Commissioner Of Income Tax, Delhi Vs. Vardhman Industries Ltd.
 Commissioner Of Income Tax, Delhi Vs. Bhushan Steels And Strips Ltd.
 Pr CIT vs. M/s Veer Gems (Gujarat High Court)

Tax tribunal offers VRS employees some relief
April, 21st 2007

A recent tax tribunal order offers relief to thousands of Government employees who have opted for voluntary retirement.

No more tedious trips to the tax man - at least not for the Government employees who have opted for VRS. In a case involving retired RBI employees, the Mumbai bench of the Income Tax Appellate Tribunal, or ITAT has ruled that employees taking VRS are entitled to tax exemptions.

The ITAT has held that of the total sum a retiring employee receives - Rs 500000 - will be automatically exempt under the Income Tax Act. That is not all! The amount above Rs 500000 will be taxed in a stagerred manner. ITAT has rules that the amount will be taxed equally over a period of three years, and not at one go as the tax department wanted.

Jitendra Sanghavi, Chartered Accountant says, "This will have a big impact as the cost of litigation for salaried employees is very high. They will be spared of unnecessary litigation which is to high these days."

As per the Income Tax Act, the VRS amount is eligible for tax exemption only if the employee has served either 10 years or completed 40 years of age. But that is possible only if the job stays vacant.

The tax department had denied over 200 RBI employees the exemption on grounds that there was no undertaking from RBI to keep the VRS jobs vacant. But the ITAT said despite no undertaking, it was obvious that RBI was unlikely to fill the positions as it had reduced over 8000 jobs in six years. This order wil not only benefit 200 RBI  employees but also set a precedent for VRS tax exemptions across the country.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions