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VRS payout tax: Is severance pay taxable? Pune ITAT rules 65.21 lakh Pfizer retirement payout was not taxable

Pune ITAT has ruled that a 65.21 lakh payout received by a Pfizer employee under a voluntary retirement scheme was a capital receipt and not taxable. The tribunal said Section 56(2)(xi) did not apply because the employee had voluntarily resigned under the scheme, rather than being terminated.