Dear All,
My Father was in service of Govt. of Punjab as an Engineer. After his death in 2008, we got gratuity amount around 7.50 lacs (Rs. 3.50 lacs in 2009 and res in 2011) from the department. My question is that whether this amount is taxable. In my view, whole of this amount is not taxable as Section 10 (10) (i) of Income Tax act exempts any amount of death cum retirement gratuity to employees of central or state govt. and 10 (10) (iii) applies only to employees other than state or central govt.
please send or give any reference to any circular or clarification of cbdt regarding this view.
thanks
CAclubindia
