GRATUATY FOR PSU

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2010 Hi,

One of my client, retired from Food corporation for india on 31Oct 2009.

The total gratuity payable would be aprox 6.5lakh.

As per the FCI officials,the payable amount is taxable under IT act,1961 after deducting 3.5 lakh exemption limit.

My question is this, as per the latest govt notification the expemption limit extended to 10lakhs.

Can u please confirm whether this extention of 10 lakh is for only specified establishments.

Please note that Food corporation of india is an PSU..

Appreciate if you guys response as early as possible.

Thanks,
Anil

srinath

srinath (Expert)
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22 July 2010 the gratuity for the period 2009-2010 would be 3.5 lakhs only

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2010 as per the new notification the gratuity exemption extended to Rs10lakh effective from 24 May 20101.

Please give me the solution .

Thanks for quick response,

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srinath

srinath (Expert)
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23 July 2010 ya but the client retired on 31st oct 2009....

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2010 As per you, client is not eligible because he is retired before 24th may 2010 and also note that it doesnt matter whether it is PSU OF govt concern....

Is it correct ?