Gratuity exemption

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This discussion clarifies whether an employee can claim gratuity exemption under Section 10(10A) from a previous employer and then again from a current employer. The consensus is that while gratuity is payable upon resignation, the exemption can only be claimed once based on the rules, not on a double-dipping basis. The exemption is subject to specific ceilings mentioned in the relevant tax section.

K BHEEMA REDDY

K BHEEMA REDDY (Querist)
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22 June 2020 Dear sir,
I have one doubt regarding gratuity exemption.
In our organisation some of employees are joined in middle of the year and submitted form 12B of previous company for computation of tax liability on estimation/actual basis, and that employees also received gratuity . At the time of full and final settlement of employee in previous company gratuity exemption also claimed under sec 10(10A).whether exemption claimed is correct or not before retirement or death.

Thanks in advance
Regards
BHEEMA REDDY.

Eswar Reddy S

Eswar Reddy S (Expert)
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23 June 2020 Even resignation from an organisation is eligible for gratuity & Exemption is available on the amount received as gratuity. It is subjected to ceiling stated in the section

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K BHEEMA REDDY

K BHEEMA REDDY (Querist)
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23 June 2020 Thank you eswar reddy S

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