Gratuity - Section (New) 19 / (Old) 10(10)

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....ers or holders being persons not governed by the said rules); • (ii) to the members of the all-India services; • (iii) to the members of the civil services of a State or holders of civil posts under a State; or • (iv) to the employees of a local authority; 4. Payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence services. Entire amount.   5. Gratuity received under the Payment of Gratuity Act, 1972. Amount received, as restricted to the amount calculated as per the provisions of section 4(2) and (3) of the Gratuity Act, 1972.   6. Any other gratuity received by an employee- (i) on his r....

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....Gratuity is a sum of money paid by an employer to an employee for services rendered in the company. However, gratuity is paid only to employees who complete 5 or more years with the company. • If Gratuity is received by any employee while in employment then it is fully taxable in the hands of employee. While if gratuity is received in case of death or retirement or resignation, then exemption is available up to the following limits: • In case of Government employee {Section 10(10)(i))} - Any gratuity received by an employee of Central Government, State Government or local authority is wholly exempt from tax. This exemption is not available to employees of Statutory Corporation. • In case of e....

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....eceived             Notes: • Salary includes basic pay, dearness allowance to the extent it forms part of retirement benefits and percentage wise fixed commission on turnover. • If gratuity is received by an employee from more than one employer in the same previous year or in different previous years the aggregate maximum amount exempt from tax on account of gratuity cannot exceed 20,00,000 (Rs.10,00,000/- upto 28th March 2018). • If an employee had also rendered service to any other employer, then period of service to such former employer is also included while calculating "completed year of service" subject to condition that any grat....