Regarding tax treatment

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sanjay kumar (Querist)
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27 July 2013 Sir, my younger brother was working in orgnisation , he left and join another company. He got pf amount of Rs.507333 and gratuity of Rs. 193846. Now my question is that the amount will treat as income or excemption from taxable income.Pls. help me.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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27 July 2013 If the PF withdrawn after service of 5 years then it is exempted from tax

Gratuity is exempted under section 10(10) Exemption shall be limited to half month salary (based on last 10 months average) for each completed year of service or Rs. 10 Lakhs whichever is less.