Separate Block of Income

Question 1

Which payment from Salary is taxed under Separate block of income..?

Answer 1

Payment received on the retirement of employment i.e., Compensation for loss or redundancy of employment and Golden handshake payment.

Question 2

Golden Handshake payment and compensation for loss of employment are taxable under a separate block at which rate?

Answer 2

A/B %
Where A is the tax for the previous 3 years and
B is person’s taxable income for previous 3 years.