I have a query releted to payment of gratuity. Employer paid to gratuity with Rs. 72000 to his employee after resignation. After that employer appointed the another company but company has control under same management. it means Company has group of company. My query is only, shall gratuity be exempted from income tax or not. give me solution as possible.
01 April 2015
If gratuity is paid after 5 years of continuous service and paid as per Gratuity Act it will be exempted from tax on resignation. Reappointment in another company of same management no problem.
CAclubindia
