Telangana Jagruthi president Kalvakuntla Kavitha has urged the Centre to provide total temporary relief on tax for severance packages offered by tech companies to employees laid off. Kavitha appealed to the Union Finance Minister to adopt a compassionate approach and exempt severance packages from tax completely.
She pointed out that existing provisions provide limited exemptions depending on how severance is structured, but are neither adequate nor responsive to the realities of sudden and large-scale layoffs.
Kavitha argued that a complete, temporary tax exemption on severance packages would ensure that impacted families retain the full financial cushion intended to support them during a period of transition and uncertainty.
