Man’s VRS payout of Rs 65.21 lakh taxed as salary; ITAT Pune says it is capital receipt

The man had been employed in Aurangabad. During FY 2018-19, his employer shut down its Aurangabad plant and introduced a financial scheme for its employees. The man opted for voluntary retirement under the scheme and received a total payment of Rs 65,21,105. The amount consisted of ex-gratia/severance pay, early bid and group participation incentives, and payment towards the notice period.