banner_ad

Exemption of gratuity in case of govt employees

This query is : Resolved 
Profile Image

Profile Image

(Querist)
26 July 2025 Is according to section 10(10)(i) gratuity to govt employees fully exempt from tax?

My client got retired from LIC which is a central govt undertaking. As per his form 16, he received gratuity of Rs. 40 lakhs however only he has been exemption of Rs. 20 lakhs only. So can I claim full exemption of Rs. 40 lakhs in ITR or even for govt employees the gratuity is exempt upto Rs. 20 lakhs
Profile Image

Dhirajlal Rambhia

Profile Image

Dhirajlal Rambhia (Expert)
27 July 2025 Employees of public sector undertakings (PSUs) like LIC (Life Insurance Corporation of India) are not classified as government employees for the purposes of Section 10(10)(i). Instead, their gratuity exemption falls under Section 10(10)(ii) or Section 10(10)(iii), depending on the applicability of the Payment of Gratuity Act, 1972. For LIC and other PSU employees, the current exemption limit is Rs. 20 lakh. Any gratuity received above this limit is taxable.
Profile Image

Dhirajlal Rambhia

Profile Image

Dhirajlal Rambhia (Expert)
25 September 2025 Good luck...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
03 May 2026
Senior Chartered Accountant

Nirmal Jain & Co

New Delhi

CA

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details