Time period - payment of gratuity

[Rahul Bagaria]

Is gratuity paid on completion of 2 years of service entirely taxable, if no what is the amount of exemption. The company is not covered under the payment of grautity act.

AI Summary

Gratuity Tax Exemption: No Minimum Service Period Under Section 10(10) of Income Tax Act; Exemption Not for In-Service Gratuity. A participant inquired whether gratuity paid after two years of service is taxable and the extent of any exemption, noting that the company is not covered under the Payment of Gratuity Act. A response clarified that under Section 10(10) of the Income Tax Act, there is no specific minimum period required for gratuity exemption eligibility. Gratuity received upon retirement or death is eligible for exemption, but gratuity received during employment is not eligible for this benefit.