AMIT KUMAR (PCC) (38 Points)
14 July 2010my question is that
whethter the gratuity is taxable when it is recd. by family member after the death but before the retirement of non govt. employee?
as per jaspreet sir, it is not taxable becoz gratuity is neither due or recd. by employee.
please answer the question if any one know.
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 14 July 2010
Here i would like to refer 2 sections. Charging Section 17(1) of Income Tax Act, 1961 and Section 10(10) for exemption of Gratuity. In both the Sections the word used is "received" which means that taxability and exemption will be possible only when there is receipt of gratuity. As in the above case the employee did not receive gratuity till the date of his death then it shall not be taxable in his hands.
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