Is BSNL VRS Amount Taxable, Check Income Tax 10C & 89

Whether BSNL VRS amount is taxable, Find relevant sections of Income tax 10C & 89 for benefits, Check for any type of TDS applicable on VRS Ex Gratia payment as per the Act and if there what is the exemption limit…

Let you know what is the TDS on BSNL Voluntary Retirement Scheme payments if applicable and taxable deduction under section 10(10c) of the income tax for the benefits or amount received on VRS 2019 if any.

As per the Section 89 of Income Tax, There is a Relief when salary, etc.., is paid in arrears or in advance, let us have a look in detail

  • If an income tax assessee is in receipt of a sum in the nature of employee salary, which has being paid in arrears or in advance or is in receipt, in any one of the financial year for the following

Voluntary Retirement or Separation as per Income Tax Section 10 (10C)

If the working employee receives compensation in one time or in instalments through Voluntary Retirement Scheme or Separation, Income Tax Section 10(10C) provides the exemption for such received amount upto a maximum of Rs. 5,00,000 for the following category employees who are working in various companies related to state and central governments

The exemption or deduction under Section 10(10C) will applicable only once and not allowed in any subsequent years.

Income Tax Terms for Claiming Exemption as per Rule 2BA

Here for exemption, salary means Basic Salary and Dearness allowance, which was taken for retirement benefits, and also if any BSNL employee who opts VRS and having relief on the taxable amount under section 89 on VRS benefits, then this Income Tax 2BA is not applicable.

The above is the information (BSNL VRS amount taxable or not ) collected through various sources, we request the readers to share any information with all if have any kind of source.

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4 thoughts on “Is BSNL VRS Amount Taxable, Check Income Tax 10C & 89”

  1. I’ve recd 2 form-16, one for ex-gratia & another for pension. How could I fill the return & how much amount shd be deducted for both?

  2. I am Ramesh karker I had paid first instalment of exgratio amount on vrs 345000 in March 2020 and got 650000 in subsequent financial year what is the exemption in tax

  3. I got vrs from BSNL on 31.01.20 and got ex-gratia amount of rs. 238098 I’m march20 for which I have taken assumption under section 10(c) now in the fy2020-2021 igot three install ments total amount ing rs465860.can I avail assumption under section 10 c


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