Income tax

YOUR QUERY:  Is GPF And Death Gratuity Taxable and how much?

REPLY:1. The GPF (General Provident Fund)  amount received is fully exempt - Section 10 (11) of the Income tax Act 1961.

2) The Gratuity received is -

- fully exempt in the ases of Central/State Govt Employees;

- partly exempt, to the extent o, the amount calculated under S.4(2) & 4 (3) of the Payment of Gratuity Act 1972, if received under that Act;

- in othercases - exempt to the extent of one half month's salary for every completed year of service, limited to Rs 10 lakhs, as provided in Section 10(10)(iii)of the Income tax Act 1961.

Thank You Sir,

Is it necessary to show some documentation for this?

Thank you.

Your Query: Is it necessary to show some documentation for this?

Reply: For the nature of the income you will have to keep documentation. The intimation letter/s recd.from the concerned authorities, will do.