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.?
Government employee status may not extend to employees of state-owned corporations for income tax gratuity exemption. Whether an employee of a state-owned corporation qualifies as a government employee for income tax gratuity exemption is questioned. The forum response is that a government company is a separate body corporate, not a government department, and employees of such corporations cannot be treated as government employees for the purpose of claiming gratuity exemption; reliance on a penal statute's definition is discussed but not accepted as conclusive for assessment proceedings. (AI Summary)
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