a person resigned from pvt.company 1 covered under payment of gratuity act worked for 8yrs 10 months, recvd gratuity 1.5 lacs .
he joined new company ,worked for 2 months during fy 2018-19.
while filing return ,he claimed deduction u/s 10(10) for 1.5 lacs .
however department issued notice stating that claim for deduction is not admissible, amount of deduction will be 0.
please suggest whether department is correct or not
Gratuity has been made tax exempt from Pvt Ltd Co (not covered under Payment of Gratuity Act) w.e.f 29.3.2018.
When did you resign ??
It must be before 29.3.2018 and hence AO must have disallowed it under 10(10).
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