Voluntary Retirement Scheme

To recompense the employee in the case of a job loss brought on by a reduction in the workforce, the Voluntary Retirement Scheme was created. Employees of the following organisations are given access to it:-

(1) Public sector organisation

(2) Local government

(3) Cooperative society

(4) A body created by a federal, state, or provincial law

(5) A company or other commercial organisation that produces any of the following items:-

    (i) Electronic, aeronautical, and military hardware

    (ii) Items covered under the Atomic Energy Act of 1962 that is connected to the creation or use of atomic energy.

Know more about section 80g.

(6) State Administration

(7) Central Administration

(8) An Indian Institute of Technology (IIT) as defined under clause (g) of Section 3 of the Indian Institutes of Technology Act, 1961; or any Institute of Management that the Central Government may designate in this regard by notice in the Official Gazette.

(9) The important institutes across India or in any State or State as may be announced. The following requirements must be met in order for the exemption to be available:-

    (a) The payment made solely at the time of a person's voluntary retirement or termination of their employment in line with a voluntary retirement plan or plans, or in the case of a public sector employer, a voluntary separation plan. Even if the composition is received in instalments, the exemption should be permitted as of the assessment year 2004-05.

   (b) Additionally, the plan of the aforementioned companies, authorities, societies, universities, or institutes referred above, depending on the situation, governing the payment of the such amount, is framed in accordance with such standards (including the criteria of economic viability as would be prescribed). If there is a voluntary separation plan for public sector enterprises, it would likewise follow the previously mentioned defined parameters.

(10) The following exemptions will be granted to employees receiving the VRS in the following order:-

(a) A payment equal to three months' worth of pay for each year of service that has been completed.

(b) A retirement salary multiplied by the number of months of service left.

80g deduction is very much advantageous for ngos.