Budget updates move fast, keep up with CAclubindia Pro. Subscribe today!

Gratuity

168 views 2 replies

Ashiwini Ballodia

Managing Partner at TAXounting

8742 Points Joined November 2013

If a employee has worked in a organization for 4 years 8 months and he has received gratuity.

Whether the employee is eligible for any exemption as per Income Tax.

Replies (2)

Swadhin Sahoo

18 Points Joined June 2016

No, gratuity is exemted only if the employee has completed 5 year of continues service

Ashiwini Ballodia

Managing Partner at TAXounting

8742 Points Joined November 2013

Thanks for the response but if you read sec 10(10) of Income Tax Act it is given that if a person is not covered under Gratuity Act than the person will be eligible for a Deduction of one-half of monthly salary of for each completed year