Gratuity And Leave Salary
This query is : Resolved
20 September 2007
Whether Gratuity and Leave Salary becoming due on the death of an employee is taxable in the hands of nominee? Please explain with reasons.
20 September 2007
Hello Mr Mahesh,
Gratuity payment to a widow or other legal heirs of any employee who dies in active service shall be exempt from income tax(Circular No. 573 dated 21.8.90).
Gratuity payment to a widow or other legal heirs of any employee who dies in active service shall be exempt from income tax(Circular No. 573 dated 21.8.90).
20 September 2007
As per Section 10(10AA) of the Income tax Act,1956 : "Leave salary paid to legal heirs of a deceased employee in respect of privilege leave standing to the credit of such employee at the time of death is not taxable"
20 September 2007
Sec 10(10AA) does not expressly exempt leave salary received by the nominee/legal heir.Board Circular exempts it vide circular no.35/1/65-IT(B) dt.5/11/65. On what basis such exemption is allowed by Board?
Gratuity received by legal heir/nominee is exempt as per Board's Circular? On what basis such exemption is allowed by Board?
Gratuity received by legal heir/nominee is exempt as per Board's Circular? On what basis such exemption is allowed by Board?
21 September 2007
Dear Mr Mahesh,
You are asking abt the basis of board.
Yeah its a good question, board can't amend the act itself...good
You are asking abt the basis of board.
Yeah its a good question, board can't amend the act itself...good
21 September 2007
I will go through the rule or power if any, then only I can answer the query.
Thanks
Thanks
21 September 2007
Your question is whether it is taxable in the hands of the nominee. Is it income of the nominee?. First let us decide whether it is in the nature of income in the hands of nominee. If it is not income in the hands of nominee he is not liable to pay tax.
21 September 2007
Hello,
Gratuity will be Exempt from Tax but Leave salary would be taxable in the hands of nominee
Gratuity will be Exempt from Tax but Leave salary would be taxable in the hands of nominee
31 October 2007
Gratuity will be exempt from Tax. Leave Salary certainly will be taxable.
09 November 2007
Thanks for secondment
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- NRI starting business in India
- ITDS U/S.194T of Firm
- ADVANCE PAYMENT OF ADVOCATE
- Non-Compliance documents have not been submitted by the contractors debited
- Filling ITR - U
- Eway bill not cancelled within 24 hous what can be due
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
