gratuity

This query is : Resolved

gurpreet (Querist)
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20 August 2009 DEAR SIR/MADAM

A PERSON GET HIS NAME STRUCK OFF FROM THE EMPLOYEE REGISTER (I.E. PERMANENT EMPLOYEE) AND CONTIURE SERVCE AS TEMPORARY EMPLOYEE AND GET HIS GRATUITY PAYMENT. AFTER SOME MONTHS HE AGAIN GET ON ROLL AS PERMANENT EMPLOYEE.
NOW THE GRATUITY RECEIVED AT TIME OF FIRST STRIKE OFF AS PERMANENT EMOLOYEE WILL BE FULLY TAXABLE OR EXEMPTION AS AVAILABLE TO EMPLOYEES OF PRIVATE COMPANY AT TIME OF RETIREMENT WILL BE AVAILABLE.

PLEASE SUGGEST.

Ravish

Ravish (Expert)
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20 August 2009 Only gratuity at time of retirement is exempt.

So the same shall be taxable in ur case.

If he claims exemption for the 1st gratuity, then same cannot be availed 2nd time.