Sir / Madam,
I have one query that, Can employer pay retired employees all dues like Leave Encashment, gratuity, Pay arrears etc. in two different Financial years, so that employee could get Income tax benefit? e.g If one employee is retired on Nov'12, then he is due for all retirement benefits like gratuity, Leave encashment in same F.Y., But along with his salary for that perticular F.Y., he is liable for heavy tax on that income. So can employer and employee has mutual discussion on same and pay some part of his retirement dues in next F.Y. so that employee could get income tax benefit?.
Please answer this query in employer's point of view considering the rules and regulations of Income Tax Act, 1961.
Regards,
Harshada
I have one query that, Can employer pay retired employees all dues like Leave Encashment, gratuity, Pay arrears etc. in two different Financial years, so that employee could get Income tax benefit? e.g If one employee is retired on Nov'12, then he is due for all retirement benefits like gratuity, Leave encashment in same F.Y., But along with his salary for that perticular F.Y., he is liable for heavy tax on that income. So can employer and employee has mutual discussion on same and pay some part of his retirement dues in next F.Y. so that employee could get income tax benefit?.
Please answer this query in employer's point of view considering the rules and regulations of Income Tax Act, 1961.
Regards,
Harshada