Gratuity Received is Taxable or not

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Gratuity received by employees is generally taxable, but there are specific exemption limits set by the Income Tax Act. For employees covered under the Gratuity Act, up to £20 lakh is exempt. For those not covered, the limit is £10 lakh. These limits apply to gratuity received due to retirement, death, resignation, or disablement on or after 29 March 2018.

ARCHANA

ARCHANA (Querist)
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29 July 2022 Sir/mam,

Any Person Received Gratuity Received in Income tax it is taxable or not

Please clarify my doubt

Thanking you,

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 July 2022 As per CBDT Notification no. S.O. 1213(E), dated 8 March 2019, the exemption limit of Rs 20 lakh would be applicable to employees in the event of retirement or death or resignation or disablement on or after 29 March 2018.
I.e. For employees covered under Gratuity act, up to Rs. 20 lakhs it is exempted u/s 10(10) of IT act...
But for employees not covered under Gratuity act, the limit is Rs. 10 lakhs.

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ARCHANA

ARCHANA (Querist)
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29 July 2022 Thank you Sir for your Quick reply

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 July 2022 You are welcome ....

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