Gratuity received on resignation is taxable or not ?

CA Abhishek Singh (practice) (2106 Points)

19 July 2014  

one of my client received gratuity from fomer employers in the year 2013-14 rs.400000/-. he resigned from the job in 2013 and started his own business. He did not retire but he resigned.

 

whether this is taxable or exempt ?