Hyderabad, April 8 -- Telangana Jagruthi founder and president, Kalvakuntla Kavitha, has urged Union Finance Minister Nirmala Sitharaman to grant a one-time waiver of Income Tax on severance packages, citing massive layoffs in the private sector across the country.

In a letter to the Finance Minister, Kavitha raised concern over no "meaningful tax relief" for employees facing termination of jobs under the New Tax Regime, saying that immediate taxation leads to an inequitable situation.

The income tax on severance packages comes under Section 18(1)(a) of the Income Tax Act, 2025, under profits in lieu of salary.

She wrote, "I am writing to you with deep concern regarding the thousands of employees across our country who are facing sudde...