Example:- X, an employee of Central Govt., receives 9,20,000 as gratuity at the time of his retirement on 31st December, 2014. Is gratuity fully exempt from tax? Does it makes any difference if he joins a company in the private sector on 11th January, 2015?
10 August, 2015
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Gratuity exemption under Section 10(10)(i) remains available even if retiree accepts private sector employment after retirement.
Gratuity paid to a government employee on retirement is fully exempt from income tax under the governing gratuity exemption provision, and that exemption remains available even if the retiree subsequently accepts employment in the private sector.
Note: It is a system-generated summary and is for quick reference only.