As per the Gratuity Act, gratuity is payable on completion of five years of services, but if employer voluntary pays the garutity on termination or resignation even he works for less than five years.
Will he entitled to claim the exemption under Income Tax, Since in Income Tax act [Section 10(10)iii].there is no condition that five years should be completed.
15 December 2012
Yes, he is entitled to claim exemption provided that he could not complete continues period of five years because of circumstances which are beyond his control say x is incapable to serve in the service after he met with an accident.
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