An Individual retires from A PSU organisation receives 17 Lakhs as gratuity, total Amount shown in Form 16 is 26 Lakhs(Inclusing Gratuity) and TDS deducted on 26Lakhs.
What is the tax implication,keeping in view the new limit of 20 Lakhs?
CA Ankur Agarwal (CA) (110 Points)
09 July 2018An Individual retires from A PSU organisation receives 17 Lakhs as gratuity, total Amount shown in Form 16 is 26 Lakhs(Inclusing Gratuity) and TDS deducted on 26Lakhs.
What is the tax implication,keeping in view the new limit of 20 Lakhs?
Kavita Modi
(CA Job)
(232 Points)
Replied 09 July 2018
rama krishnan
(12234 Points)
Replied 10 July 2018
J S BHAVSAR
(CONSULTING)
(1288 Points)
Replied 10 July 2018
If gratuity received is less than Rs 20 Lakhs, the whole of the gratuity received is tax free
If gratuity received is more than Rs 20 Lakhs, the difference above Rs 20 lakhs is taxable, Rs 20 Lakhs will remain tax free.
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