rohith
asked
Hi CAN I Know, IF GRATUITY IS RECEIVED FROM MORE THAN ONE EMPLOYER IN THE SAME YEAR, WHAT WILL BE THE CEILING?
0
0
Answer Now
Comment
Report
4
Answers
narahari
answered
Total amount of Gratuity is exempt from tax subject to following limit:
In case of Gratuity received by a Government Employee
Any gratuity received by an employee of the Central Government, State Government or local authority, on death or retirement is fully exempt from tax.
In case of Gratuity received by an employee where Employer is covered by the Payment of Gratuity Act
The least of the following is exempt from Tax
- 15 days salary based on the salary last drawn for every completed year of service or part thereof in excess of 6 months.
- Rs 10,00,000
- Gratuity actually received
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below –
For any questions Request A Call Back
narahari
answered
Gratuity Received is exempt only once during lifetime of employee subject to maximum Limit as may be applicable.
it does not matter it is received how many times during same year or lifetime.
Some portion of gratuity received is exempt from tax as per Section 10(10) of the Income Tax Act
Total amount of Gratuity is Exempt only once during life time irrespective of:
- RECEIVED FROM HOW MANY EMPLOYER.
- RECEIVED HOW MANY TIMES DURING LIFE TIME.
CA Sandeep Bohra
answered
The Ceiling of Rs.3,50,000 would apply to aggregate of gratuity from one or more employers in the same year in case of retirement or death etc. occurring after 24.9.97 Prior to that date, ceiling was Rs.2,50,000.
purvi
answered
Hello,
Gratuity Received is exempt only once during lifetime of employee subject to maximum Limit as may be applicable.
it does not matter it is received how many times during same year or lifetime.
Some portion of gratuity received is exempt from tax as per Section 10(10) of the Income Tax Act
Total amount of Gratuity is Exempt only once during life time irrespective of:
**- RECEIVED FROM HOW MANY EMPLOYER.
- RECEIVED HOW MANY TIMES DURING LIFE TIME.**
Total amount of Gratuity is exempt from tax subject to following limit:
**In case of Gratuity received by a Government Employee**
Any gratuity received by an employee of the Central Government, State Government or local authority, on death or retirement is fully exempt from tax.
**In case of Gratuity received by an employee where Employer is covered by the Payment of Gratuity Act**
The least of the following is exempt from Tax
- 15 days salary based on the salary last drawn for every completed year of service or part thereof in excess of 6 months.
- Rs 10,00,000
- Gratuity actually received
**In case of Gratuity received by an employee where Employer is not covered by the Payment of Gratuity Act**
The least of the following is exempt from Tax
-Half month’s salary for each completed year of service
-Rs 10,00,000
-Gratuity actually received
