CA Abhishek Singh (practice) (2106 Points)
19 July 2014Hello everyone,
one of my client received gratuity from two former employers in fy 13-14 rs.400000/- on resignation.
He resigned from the job and started his own business. whether gratuity is taxable or exempt ? waiting for the views of the experts.
sandeep
(CMA-FINAL)
(59 Points)
Replied 19 July 2014
1.If he is GOVT employee fully exempted.
2.if he is private employee,covered under Gratutity act, calculation has to be done as per sec10(10)(ii)
3.if he is private employee,not covered under Gratutity act, calculation has to be done as per sec10(10)(iii)
For above 2&3 max limit is 10,00,000 his life time no limit on no of employers
Arpit Pachisia
(CA)
(734 Points)
Replied 19 July 2014
If he is covered under the Payment Of Gratuity Act (other than Govt Employee), than
He is exempt from tax to the extent of minimum of either of below three items;
Thanking You
CAclubindia
