one of my client is reitred employee of MSEDCL.(Mah state electricity developement corporation). He received gratuity of ₹ 30 lakh. Can he take exemption of entire amount of gratuity received u/s 10(10) on the ground Government employee.
MSEDCL is State Govt owned company .
Can the employee of Government company be treated as government employee ?
further u/s 21(b) of Indian penal code defines Govt employee as' employee of Govt company is govt employee.' Can we take this as concrete base during the assessment proceedings.?
MSEDCL employees not classified as government employees for Section 10(10) income tax exemption on gratuity. A query was raised regarding whether an employee of a state government-owned company, specifically MSEDCL, qualifies as a 'government employee' for the purpose of income tax exemption on gratuity under Section 10(10) of the Income Tax Act. The discussion highlighted that a government-owned corporation is not considered a government department and has a separate legal existence. Therefore, its employees cannot be classified as government employees. The Indian Penal Code's definition of a government employee was also referenced, but it was concluded that this does not apply to employees of government corporations. (AI Summary)
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