Alok Singh (209 Points)
07 September 2019
Pranav Aggarwal
(525 Points)
Replied 07 September 2019
Alok Singh
(209 Points)
Replied 07 September 2019
Pranav Aggarwal
(525 Points)
Replied 07 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 07 September 2019
1. There is no clear explanation or notification relating to an exemption in relation to the payment of gratuity for employees who are not covered under the act.
2. It is a well-known fact that exemption limit u/s 10(10) has been increased from Rs. 10 lakhs to Rs. 20 lakhs effective from 28th March 2018. However, as per sec 10(10), this exemption covers only those employees who are covered under "The Payment of Gratuity Act 1972".
3. However, the then Law Minister has said that exemption limit will equally be applicable to employees who are not covered under the act.
4. The above statement contradicts with the Income-tax act and still, there is no clear explanation on the same as most of the employees are covered under the act.
5. Make sure to consult an expert on this issue.
Please correct me if the above solution has an alternative view.
Alok Singh
(209 Points)
Replied 07 September 2019
Kapadia Pravin
(17259 Points)
Replied 07 September 2019
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