Gratuity And Leave Salary

This query is : Resolved

MAHESH (Querist)
Follow

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.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

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).

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

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"

MAHESH

MAHESH (Querist)
Follow

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?

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

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

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

21 September 2007 I will go through the rule or power if any, then only I can answer the query.
Thanks

Mallidi Ramabrahmananda Reddy

Mallidi Ramabrahmananda Reddy (Expert)
Follow

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.

CMA Gul S

CMA Gul S (Expert)
Follow

21 September 2007 Hello,

Gratuity will be Exempt from Tax but Leave salary would be taxable in the hands of nominee

KAAPIL

KAAPIL (Expert)
Follow

31 October 2007 Gratuity will be exempt from Tax. Leave Salary certainly will be taxable.

Ravikumar.G

Ravikumar.G (Expert)
Follow

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

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

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

CA.K.RAMAKRISHNA. PRABHU

CA Aakarsh Jain

Venkateshwaran Ekambaram

Credible HRM

Jayanti Visani

Subscribe Now

Gratuity And Leave Salary

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA