I was laid off 6 months back by my company. As part of the package, they agreed to pay me 4 month of salary by keeping me on payrolls and providing me salary every month till 4 months got exhausted. The company wanted to avoid lumpsum payment and also make it look as if its not a layoff. Corporate tricks most companies follow. But the letter given at that time by the company clearly stated that i was laid off due to reduction exercise and i should vacate on the same day. The surprise factor was that they taxed these four months
1. My salary agreed for every month (retrenchment compensation)
2. My Leave encashment
3. 1/3rd Superannuation commutation
I would like to know what are the options or sections available for me to get the taxes paid by me refunded while filing the tax return. The company assumed as if i had resigned from the company instead being retrenched. The company is incompetent according to me to handle layoffs in a professional manner. They still think layoffs as a stigma in Indian context.Haven't grown up :-). But my argument is that i was retrenched thus i should have been given all the section 10 related exemptions as part of my agreed salary post layoff. Kindly suggest the exemptions i am eligible being laid off and which ITR i should use to file the same.
PS: I am a real person. i am not a robot. My email id is real. My query is real and genuine.
Ameet Patel Ameet N Patel is a chartered accountant and former President of Bombay Chartered Accountants Society - BCAS
Subodh Shah CA Subodh Shah is a Fellow Member of the ICAI. A merit ranker throughout his career, he stood 3rd in CA Intermediate and 17th in CA Final. In addition he also got the prize of ICAI for scoring the highest marks in Direct Taxes at CA Final. He is practicing Chartered Accountant as well as a teacher for over 20 years.
Ameya Kunte Ameya Kunte is a Tax Professional, Chartered Accountant & Co-founder - Taxsutra.com
Nikhil Vadia CISA qualified Nikhil Vadia is a Chartered Accountant in practice since 1997
Vaibhav Sankla Vaibhav is a member of the board of directors of H&R Block India and is responsible for strategy and business development.
Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on financial and tax related issues
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