Is Severance pay Taxable?

Dear All,

Could you please advise if Severance pay is taxable in the hands of employees? In case it’s tax-exempt, is there any limit for the exemption? This is a little urgent, so appreciate a prompt response on this.

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Serverance pay is taxable and treated the same as part of the salary package. TDS to be calculated and deducted.


Thanks the clarification, Kavitha.

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