VRS is a monetary facility provided by the corporates for the retrenchment of some of its employees due to various reasons related to employees and the company. It is opted by an employee that wishes to voluntarily end his or her service tenure at the organization before his or her retirement date.

It is applicable only to a person that has completed 10 years’ service in the organization. The person must be above the age of 40 years. · It applies to all employees, including workers and executives of the company, except the director of the company or cooperative society.

 An Individual can receive VRS from more than one company in his lifetime. But he can plan his tax liability only once.