Gratuity received by PNB Employee rs. 10,00,000/- on retirement after 32 years of service. Is there any special exemption to PNB Emplyees for gratuity or the provisions of Gratuity Act 1972 will apply ? Is whole gratuity is exempt from tax>
15 July 2017
As per the provision of Income Tax Act. Any gratuity received by an employee of the Central Government, State Government or local authority, on death or retirement is fully exempt from tax.
15 July 2017
Any gratuity received by an employee of the Central Government, State Government or local authority, on death or retirement is fully exempt from tax.
I am confused from above replies. Because as per provisions there is a tax liability arising around Rs. 50,000/- otherwise no tax. Please clarify? Please mention any case law regarding this problem.
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