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rajendra (Student)     18 July 2011

Gratuity Rs. 350000 to Rs. 10,00,000

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



Learning

 1 Replies

rajesh kumar (D.O.)     20 July 2011

yes its right.


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