I would like to know whether employer while paying Gratuity to his employee as per rules and regulations prescribed is liable to deduct TDS? if yes then what are the provisions relating to the same and what is the threshhold limit for the same (i.e TDS)
Please post your reply and notify me as early as possible
Thanks
With Regards
Jwalit Sheth
NO NEED TO DEDUCT TDS ON GRATUITY PAYMENT..
REGARDS,
DEVENDRA K
no TDS ON GRATUITY
Gratutiy is expempt income i.e. tax free income
There is no requirement to deduct tds on gratuity amount.!
If the rules and regulations referred tois of Gartuity Act then No TDS,To be precise payment of gratuity under the Payment of gartuity act is tax free and thus NO TDS
Err...I don't know why all people here are saying that gratuity receipt is tax free....the fact is that it is tax free only upto a limit prescribed under the law.....
As of now any gratuity recd upto 10 lacs is tax free income.....so if you are giving gratuity above this amt then you need to deduct tax under section 192 at the time of paymmet......as per the income slab....
gratuity paid up to 10 lakhs is exempted from tax . If payment is above Rs 10 lakhs TDS u/S 192 should be made
Agree with Deepak Joshi.
i want to know when gratuity is part of CTC, (if ctc 20000/- than 500/- is for gratuity) , mean amount of gratuity deducted from your salary , whether this deducted gratuity is goning to consider for the purpose of TDS ?
CAclubindia
