New topic, new day, new morning. I want to discuss a new
topic with you.
But before discussing this new topic, because we are
talking about salary head, and especially, you have seen
the benefits of government.
The biggest benefit of government job is security.
Security means that no one can remove you from the job.
Until you don't do any big scam.
Do you understand what I am saying?
No one can remove you from the job.
But here, friends, let's take an example of a person who
does a private job.
And he is working on a good package.
With that package, when a person takes a good package and
does a good job, he buys a house, he buys cars.
He raises his standard of living a little.
Because he knows that salary is coming every month.
I will tie EMI from that.
He gets his children admitted in a good school.
He puts the gear of his life's car in the 5th gear.
But friends, sometimes there is a private job.
Anything can happen.
Suppose his car was running in the 5th gear.
Speed was 80, 90, 100.
But that man was driving his car at a higher speed.
Speed was 110, 20, 30.
And suddenly, his life's car gets a break.
And the company gives him a letter of termination.
It says that you and I were together only up to this point.
You should not come here from next month.
Think about the condition of that person.
What will he do?
How will he pay his fixed expenses?
He went to his employers and said,
Don't you have any sense?
I have taken care of so many expenses.
Employer says, let me take care of it.
I have earned money and I am closing my company.
I will go to Maldives.
I will enjoy life there.
Employer says,
What mistake did I make?
Who will pay my expenses?
Employer says,
We have mercy on you.
We will give you a full and final retrenchment compensation.
What did I say?
Employer says,
We will give you a full and final retrenchment compensation
of Rs. 10 lakhs.
With that, all your expenses will be met.
Don't get too emotional in this story.
It is a part of our profession to discuss serious cases.
Just like a doctor is not scared of an emergency case, you
should not be scared of a serious case.
Think about the treatment.
Retrenchment compensation was given.
The first question that I ask in everything, you know the
answer to.
The question is,
Can an employer give retrenchment compensation to his
employee?
Correct answer.
He can give.
He can give anything.
Now we have to see,
What is the taxability and what is the exemption?
Keep supporting me.
Just like you have supported me till now.
Government says,
First of all,
How much will we exempt in this case?
We will exempt a fixed amount of Rs. 5 lakhs.
I am talking about the exemption.
How much?
Either Rs. 5 lakhs.
Or the amount that you will get in the Industrial Dispute
Act.
And its lower.
And what is that amount?
That amount is Rs. 15.26.
You have to take the average salary of 3 months.
Average salary of 3 months.
First see from here.
This Rs. 15.26.
You had read it somewhere earlier.
Do you remember?
You had read it in the graduation.
And here you have to take the completed year.
You have read this somewhere earlier.
Do you remember?
You might have read this in the graduation.
If I am not wrong.
You have to take this.
Now when I have written the average salary.
Then some of my dear students will ask this question.
Sir, like you always say that you have to take the average
salary.
What all do you have to take in the salary?
So my answer is that you have to take in the salary.
First of all, the average salary of 3 months.
Average DA of 3 months.
And the average commission of 3 months.
According to the turnover.
What all do you have to take in this?
What all do you have to take in the salary?
Average salary of 3 months.
Plus DA.
And if there is a commission, then the commission will come.
Okay sir.
Sir, 15.26 is clear.
You have to take the average salary of 3 months.
Suppose the salary of 1 month was Rs. 1 lakh.
Rs. 2 lakh for the second month.
Rs. 3 lakh for the third month.
Let's take an example.
So what is the average?
How much is the total? Rs. 6 lakh.
Divide Rs. 6 lakh by 3.
Rs. 2 lakh is the average.
There is no problem in the average.
Next point.
Let's talk about the completed year.
Now we had studied the completed year in graduate school.
And we had studied two cases in this.
A smart student had asked me a question.
If there are 30 years and 7 months, then what should I do?
I told him to round off in that case.
In this case also you have to round off.
Round off.
If there are 30 years and 7 months, then you have to take
31 years in that case.
We are talking about the exemption.
If you are getting a retrenchment compensation, when you
are being fired from your job, that person is firing you as
an employer.
You are not resigning yourself.
The employer is firing you.
It is possible that his company is shutting down.
It is also possible that sometimes his company shuts down.
Or it is possible that you have done something like this.
It reminds me of an incident.
There is a program called Shark Tank.
There is a very famous person in that program.
He was the CEO of a company in India.
He was also fired.
He was in Shark Tank Season 1.
He was not in the second season.
He was also fired.
Even at that time, the company must have given Mr. Grover a
retrenchment compensation.
How much taxable and how much exempt is the retrenchment
compensation in Mr.
Grover's hands?
First we will see if it is 5 lakhs or 15.26 lakhs into
average salary.
You have to take average salary in this.
This is off for 3 months.
You have to take average salary.
And you have to multiply it by the completed year.
You will get the answer.
You will get the exemption.
For example, if the average salary was 26 crores.
And 15.26 crores.
Multiply it by 26 crores.
This is the average salary for 3 months.
And the completed year was 5 years.
So, Mr. Grover's salary was 75 crores.
And the government's limit was 5 lakhs.
What is less than 5 lakhs and 75 crores? 5 lakhs.
So, out of all the 5 lakhs exempted, all are taxable.
This is the point.
You have to compare.
Between 5 lakhs and 15.26 lakhs.
Is the point clear?
So, this was the topic of our retrenchment compensation.
Thank you very much.