Gratuity Section 10 10

Govt increases gratuity exemption limit u s section 10 10 iii to 20 lakhs from existing rs.

Gratuity section 10 10. Retirement gratuity received under the pension code regulations applicable to members of the defence service is fully exempt from tax. Gratuity section 10 10 of income tax act. Last updated on june 25 2020 by editorial staff.

Gratuity can either be received by. Salary last drawn number of completed years of services 15 26. In case of seasonal establishments 15 days is substituted by 7 days.

Employees who are not covered under the payment of gratuity act 1972. An amount equal to the least of the following will be exempt from tax. 10 i any death cum retirement gratuity received under the revised pension rules of the central government or as the case may be the central civil services pension rules 1972 or under any similar scheme applicable to the members of the civil services of the union or holders of posts connected with defence or of civil posts under the union such members or holders being persons not governed by the said rules or to the members of the.

16 2019 dated 8th march 2019. While if gratuity is received in case of death or retirement or resignation then exemption is available up to the following limits. Emphasis is on the underlined words.

In case of government employee. Gratuity exemption section 10 10 if gratuity is received by any employee while in employment then it is fully taxable in the hands of employee. In case of employees covered by payment of gratuity act.

The employee himself at the time of his retirement. Of completed years of service or part thereof in excess of 6 months. Employees who are covered under the payment of gratuity act 1972.