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a number of multinational companies have recently announced Mass layoffs affecting thousands of employees some of the top companies like Twitter meta Google and Amazon are compensating their employees while terminating their services to save on Rising operational expenses the idea behind making this payment is to ensure that the employees have enough to survive on before they get employed at any other place however is the severance based subject to taxation if the answer is yes then how is it taxed [Music] there are different kinds of severance pay depending on the nature of layoffs for example people employed by the government and public sector undertakings psus are asked to voluntary retire under the voluntary retirement scheme vrs though one may argue that severance pay is also like an income section 10 Tennessee of the income tax act 1961 lays down severance pay up to a maximum of 5 lakh rupees would be exempt from tax this means that if an employee has received 15 lakh rupees as...