Sometimes employers declare V.R.S for the employees as per the scheme, The employers pay a good sum of money in lump some or in parts and the employees retire voluntarily

Deduction allowed under this section for such amount paid as VRS

Deduction Amount

  1. This Deduction is allowed in 5 year starting with the year when amount is paid (1/5  every year)
  2. No Deduction of VRS Expenses under any other Section
  3. In case amount paid in instalments , deduction allowed for each instalment separately in 5 years

QUESTIONS

Q1

Proft and Loss of A Ltd  
SALES 1000000
Less  
EXPENSES 400000
PROFIT 600000

Suppose expenses include VRS expenses of 100000

View Answer
  1. Income Tax
  2. PGBP Income
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 7 years. He provides courses for Mathematics and Science from Class 6 to 12. You can learn personally from here https://www.teachoo.com/premium/maths-and-science-classes/.
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