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Gratuity taxability

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11 December 2017 Hi One of My client Joined in an organisation on april 2010, and in 2013 that organisation changed it's legal entity. In 2016 he moved to U.S. but working in the same oranisation, So While leaving form India That Organisation paid Gratuity to him since he didn't completed 5 years in the New legal Entity they paid him Gratuity as Ex-gratia after deducting Taxes., So Now Can i claim it as Gratuity and avail deduction u/s 10(10).

Note: His Paycheck shows as Ex-gratia Payment.,


11 December 2017 Ex-gratia payment can't be treated as gratuity and deduction can't be claimed.

11 December 2017 Sir., But Actually It was Gratuity Amount which was termed as Ex-gratia, so still it is not deducted ?




11 December 2017 Still it is not deducted.

11 December 2017 Even if it is paid as Gratuity, Income Tax provision requires completion of 5 years term for Gratuity to be exempted!


12 December 2017 Agree with CA R SEETHARAMAN sir and Vaibhav sir opinon.



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