A Employee, covered under Payment of gratuity act, 1972, retires on 31/10/2008. He received gratuity on 12/01/2010 for Rs. 3,55,000 [when the threshold limit was Rs. 3,50,000 as per IT Act,1961 read with Gratuity Act 1972 sec 4 (3) ].
Again he received gratuity from the same employer on 11/11/2010 for Rs. 4,48,000
There was an amendment to increase the exemption limit from Rs. 3,50,000 to Rs. 10,00,000 w.e.f 24/05/2010
Question 1
Now, for the purpose of Sec 10(10), IT Act 1961, the Threshold limit of Rs. 3,50,000 is applicable in this case or Rs. 10,00,000 ? Will he be taxed for gratuity received on 11/11/2010, if yes, what is the tax liability ?
Question 2
whether exemption limit is with reference to -
(a) Date of retirement or
(b) Date on which gratuity is received
