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Gratuity is a benefit given by the employer to employees. A recently approved amendment by the Centre has increased the maximum limit of gratuity. Now it is tax exempt up to Rs 20 lakh from the previous ceiling of Rs 10 lakh, which comes under Section 10 (10) of the Income Tax Act.
Dec 6, 2022 · Exemption under Gratuity. 1. If Gratuity is received during the period of employment then NO exemption will be provided to any employee whether employee of government firm or others. 2. If Gratuity is provided after retirement to the employees of any government firm then it is FULLY EXEMPT for tax purposes. 3.
May 20, 2024 · Gratuity received by government employees is fully exempt from income tax. For non-government employees, gratuity is partially exempt. The exempted amount is subject to a maximum limit set by the government, and any amount exceeding the limit may be taxable.
Mar 14, 2019 · Present article contains the answer to the basic gratuity related questions like what is the eligibility criteria of gratuity, what is the gratuity calculation formula and what is the gratuity exemption limit under the income tax.
Jul 13, 2018 · Gratuity Exemption – Section 10 (10) Author - Rohit Pithisaria. Last Updated - July 13, 2018. Table of Contents. If Gratuity is received by any employee while in employment then it is fully taxable in the hands of employee.
Mar 7, 2019 · Ministry of Finance has enhanced the income tax exemption for gratuity under section 10 (10) (iii) of the Income Tax Act, 1961 to Rs. 20 lakhs.
A gratuity of up to Rs.20 Lakh paid by organisations covered under the Payment of Gratuity Act, 1972, other than central and state government departments, defence, and local governing bodies, is exempt from tax as per the gratuity rules 2021.
