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IF GRATUITY IS RECEIVED FROM MORE THAN ONE EMPLOYER IN THE SAME YEAR, WHAT WILL BE THE CEILING?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 rohith asked almost 3 years ago

Hi CAN I Know, IF GRATUITY IS RECEIVED FROM MORE THAN ONE EMPLOYER IN THE SAME YEAR, WHAT WILL BE THE CEILING?

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4 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

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

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

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.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered almost 3 years ago

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.

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Open uri20170510 32134 1ive9a3?1494421760 purvi answered almost 3 years ago

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

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