Gratuity query

Tax queries 376 views 6 replies

# Query : Need urgent help :

If an employee working in private co. & receives Gratuity of Rs. 12 lac., & suppose Rs. 10 lac. is exempt U/s 10 (10). Balance Taxable Gratuity is Rs. 2 lac.

Now my Question is, whether an employee can claim Relief U/s 89 (1) for this taxable portion of Gratuity.

Thanks in Advance

Replies (6)

Yes, relief can be claimed as per rule 21A(3)

Do we need to add Rs. 12 lac or Rs. 2 lac in working of Relief U/s 89(1)?

Hello, Tejas Iam enclosing Excel Sheet for Computation of Relief u/s.89 for clear understanding purpose with basic assumptions. For your query, add taxable gratuity for computation of relief u/s.89(1)

Thank u for your reply sir.

An employee has received Gratuity & Leave salary both on retirement.

how to make calculation for Relief U/s 89 (1) for Gratuity & Leave salary simultaneously.

While making Relief calculation for Gratuity, We need to add Gratuity in total income.

My Question is If I want to claim relief on Gratuity, then should I include Taxable leave salary also in Total Income for Gratuity relief calculation? & vice versa

I need calculation for relief U/s 89 for Gratuity & Leave salary on retirement simultanously.

Where to Show leave salary relief under Form 10E

Sorry, I will answer you soon


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