Income tax on VRS reciepts

Income tax on VRS reciepts

Sir, I am working in CPSU and would like to apply for VRS . The reciepts from my company I will disclose and can you suggest me IT point of view / where to invest  ?

Asked 7 years ago in Income Tax

My receipts from the company ( NTPC Ltd.)  is like this 
1. Exgratia : Rs42,49,908/-
2. Gratuty : Rs.20,00,000/- ( newly passed ?)
3.PF : 21,18,185/- ( including company's portion)
4. NDCPF: 7,49,264/- 
You please advise on IT point of view.

Asked 7 years ago

I am a female employee.

Asked 7 years ago

Hi,

All the above are tax free incomes for you.

Would suggest you connect via consultancy so that I can understand your risk profile, lifestyle, etc to suggest where you can invest your money to get optimum returns.

Regards,

Nikhil.

Nikhil Khanna

CA, Mumbai

1429 Answers

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Talk to Nikhil Khanna

As NTPC is a government sector company and maximum amount received on VRS is exempt from tax.

1) Exgratia received is exempt from tax.

2) In case of govt. employees entire amount of gratuity received on retirement is exempt from tax so no question of 20 lacs.

3) PF is exempt

From IT point of view max.amount is exempt from tax.

You can invest the retirement funds into the following avenues to secure yourself financially for future.

1) Investment in property.

2) open PPF account

3) Invest in mutual funds

4) Invest in Fixed deposits.

Park the funds in mutilpe instruments to leverage the risk and stabilise your fixed and monthly return.

Thanks

Vivek Kumar Arora

CA, Delhi

Available Now

5024 Answers

1146 Consultations

Talk to Vivek Kumar Arora NOW!

Since amount you received is tax free.

It can be invested in FDs,post office ,govt bonds if you are not willing to take risk and if you are willing to take risk it can be invested in equities and mutual funds.

It is advisable to have proper consultancy for portfolio design before taking any decision.