https://www.taxtmi.com/caselaws?id=244034 Gratuity is taxable only to the extent permitted by the statutory exemption, so income tax may be deducted from gratuity only within the lawful ceiling and not by a blanket deduction. Periods described by the employer as unauthorised absence, leave without wages or suspension cannot be excluded from continuous service unless a valid order treating them as break in service is shown under the governing service rules. In the absence of such proof, service remains continuous for gratuity computation, and unlawful deductions such as group insurance and identity card charges are impermissible. The employee was therefore entitled to gratuity computed on full continuous service, subject only to lawful tax deduction. en-us Tue, 26 Jun 2012 00:00:00 +0530 Mon, 17 Feb 2014 10:39:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=244034 Gratuity is taxable only to the extent permitted by the statutory exemption, so income tax may be deducted from gratuity only within the lawful ceiling and not by a blanket deduction. Periods described by the employer as unauthorised absence, leave without wages or suspension cannot be excluded from continuous service unless a valid order treating them as break in service is shown under the governing service rules. In the absence of such proof, service remains continuous for gratuity computation, and unlawful deductions such as group insurance and identity card charges are impermissible. The employee was therefore entitled to gratuity computed on full continuous service, subject only to lawful tax deduction. Case-Laws Indian Laws Tue, 26 Jun 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=244034