19 August 2017
Respected sir, One of my client is an insurance agent associated with L.I.C. of India. In F.Y. 2016-17 he received an amount of Rs. 2,00,000/- towards gratuity. Whether it is taxable or not ? If exempt, then under which section ? Please guide.
19 August 2017
Sir,
your client and LIC are in agent principal relationship. tax benefits on gratuity is available only if there's an employee employer relationship.
Therefore, the amount received by your client is fully taxable
CAclubindia
