Gratuity
This query is : Resolved
03 August 2010
Dear Friends if any employee received gratuty before 5 years after left the job. then the gratuity received by him will be taxable or not?
03 August 2010
Gratuity payment liability accrues after completion of 5 year of service.
If voluntarily paid then u could claim exemption u/s 10(10)(iii) as no no. of year service is mentioned.
If voluntarily paid then u could claim exemption u/s 10(10)(iii) as no no. of year service is mentioned.
03 August 2010
can't understant my friend. i repeat once again. if any employee left the job within 3 years and employer paid him gratuity because gratuity includes in his CTC. then the amount received by him as grtuity will be taxable or not?
03 August 2010
Read section 10(10)(iii) if u can be covered under that exemption.
03 August 2010
Gratuity
Any death cum retirement gratuity received by Government or Local Authority employees is exempt from tax. For Non-Government Employees the taxability depends on whether Gratuity is covered under the Gratuity Act
A) Gratuity covered under the Gratuity Act
For Gratuity covered under the Gratuity Act, total of gratuity received by an employee, covered by the Gratuity Act, from various employers in whole of service is exempt from tax to the extent of least of the following three amounts:
15 days' salary, based on the last drawn salary, for each completed year of service
Rs.10,00,000/-; or
The gratuity actually received.
B) Gratuity not covered under the Gratuity Act
For Gratuity not covered under the Gratuity Act any gratuity not covered by the Gratuity Act, is exempt from tax to the extent of least of the three amounts
The half month's salary for each completed year of service; or
Rs.10,00,000/-; or
The gratuity actually received.
Any death cum retirement gratuity received by Government or Local Authority employees is exempt from tax. For Non-Government Employees the taxability depends on whether Gratuity is covered under the Gratuity Act
A) Gratuity covered under the Gratuity Act
For Gratuity covered under the Gratuity Act, total of gratuity received by an employee, covered by the Gratuity Act, from various employers in whole of service is exempt from tax to the extent of least of the following three amounts:
15 days' salary, based on the last drawn salary, for each completed year of service
Rs.10,00,000/-; or
The gratuity actually received.
B) Gratuity not covered under the Gratuity Act
For Gratuity not covered under the Gratuity Act any gratuity not covered by the Gratuity Act, is exempt from tax to the extent of least of the three amounts
The half month's salary for each completed year of service; or
Rs.10,00,000/-; or
The gratuity actually received.
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