The Problem:

In India’s volatile job market, job security is a luxury. For many, a severance package is the only safety net between employment and a debt trap. However, under the current Income Tax Act, this "lifeline" is taxed as supplemental income—often at the highest rates—precisely when a worker is most vulnerable.

​The Reality:

​A Shrinking Safety Net: Research shows nearly 30% of terminated employees rely solely on severance to survive.
​The Tax Penalty: Taxing these payments during a crisis is effectively a penalty on job loss, causing immense financial stress and insecurity.
​Global Precedent: Nations like the U.S. and Canada offer tax concessions on severance, recognizing that transition pay is a necessity, not a bonus.
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Our Demand:

I urge the Government of India and the Ministry of Finance to:

​Amend the Income Tax Act to provide significant exemptions or relief for severance pay.
​Conduct a Comprehensive Review of current taxation on transition pay to align with the "Ease of Living" mission.
​Host Public Consultations to ensure policy changes reflect the real-world needs of Indian workers.

​The Goal:

Severance should be a bridge to the next job, not a source of revenue for the state. By exempting these payments, the government can promote economic stability and provide a fair, just transition for every hardworking Indian.

Stand with me. Sign this petition to protect the financial dignity of every Indian employee.