16 May 2018
What is the amount of Gratuity exempted from Income Tax received in May 2017 i.e. during the Financial Year 2017-18 in case of an employee of Public Sector Bank.
17 May 2018
The maximum amount exempt is Rs 20.00 Lac. However, for computation of exact amount exempt you have to see the following criteria-
The least of the following is exempt from tax:
1. Last Salary Drawn (basic + DA) x No of years of employment x 15/26; 2. 20,00,000 (which has been hiked from Rs. 10 Lakh as per the amendment); 3. Gratuity Amount Actually Received
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