CA Narendra Gupta (CA ) (256 Points)
18 June 2010It is Been Stated that person getting gratuity after 24th may 2010 is subject to the limit of rs.10 Lacs( Other than govt. employee or POGA employee ) So my Question is What will be the new limit to POGA Employee ?
As computed Gratuity for Govt. Employee is Exempt from Tax.
mehul kishnani
(student)
(264 Points)
Replied 18 June 2010
hi narendera
As per section 10(10)(ii) of income tax act income does not include
" any gratuity received under the Payment of Gratuity Act, 1972 (39 of 1972), to the extent it does not exceed an amount calculated in accordance with the provisions of sub-sections (2) and (3) of section 4 of that Act ;
It only gives the limit as mentioned in the sec 4 of Gratuity Act. Therefore once the Gratuity Act is amended, the exemption limit is automatically revised.
CA Narendra Gupta
(CA )
(256 Points)
Replied 19 June 2010
In short you mean that POGA employees will also enjoy higher exemtion limit of rs.10lacs
CAclubindia
