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jiger (trainee)     24 April 2011

GRATUITY

Hi,

I have seen one critical condition where;

AN X employee has got tax exemption benefit on gratuity FOR THE FIRST COMPANY HE WORKED WITH; & then after working with 2 other companies for not more than 5 years in each then again  he workED in 4th company for more than 6 years then in such  a case how this 4th employer will come to know that this employee has got previous tax exemption benefit under gratuity?(ALL THE COMPANIES COMING UNDER GRATUITY ACT APLLICABILITY)

from where this record can this 4th employer get? how to track it?



Learning

 2 Replies

V. VASUDEVAN (LEGAL COUNSEL)     24 April 2011

Tax exemptiion is available when the gratuity paid within the maximum limit provided by the Payment of Gratuity Act and it is no a one-off facility. ALso it is not any employer's burden to track such exemption availed by employee from his past employment.

vasudevan

jiger (trainee)     24 April 2011

HI,

thanks for ur inpi\ut,

but as far as i know gratuity tax exemption limit is 1000000, if previous tax exemption was 500000 then 10lakh minus 5 lakh=5lakh is future tax exemption limit for that employee.


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