Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Grautity exemption limit

chetan (accountant) (321 Points)

25 July 2018

Dear All

My father is BPCL employee received grautity of Rs 20 lacs in FY 17-18. Can i know the exemption limit under income tax act.

chetan

Reply
Follow
Share

5 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 25 July 2018

Gratuity received by Government employee is fully exempt.

Upgrade to CAclubindia Pro. Subscribe Now!

rama krishnan (12244 Points)
Replied 25 July 2018

bpcl is not government organization it's public sector undertaking.... if your father is covered under gratuity act,

Last salary (basic + DA)* number of years of employment* 15/26;

20,00,000 (which has been hiked from Rs. 10 Lakh as per the amendment);

Gratuity Actually received

then least of the above is exempted

1 Like

chetan (accountant) (321 Points)
Replied 25 July 2018

But is this applicable for du 2017..18.. bcz this amendment done in mar 18

rama krishnan (12244 Points)
Replied 25 July 2018

please go through the amendment, there the applicability of amendment is clearly stated

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 01 August 2018

Rs 20 Lakhs is effective from 29-Mar-2018.

The Ministry of Labour and Employment has clarified that the enhanced limit of gratuity for the private sector workers will be effective from March 29, 2018 only, in a notification issued on its website. The government in March had notified doubling of the limit of tax-free gratuity to Rs. 20 lakh in the private sector. The Payment of (Gratuity) Amendment Bill, 2018 was passed by the Lok sabha and Rajya Sabha and received assent from the President on March 28, 2018.

https://www.ndtv.com/business/enhanced-gratuity-limit-to-be-applicable-from-march-29-1861787