Query in Gratuity and PF taxability.

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This query is : Resolved

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This discussion clarifies the taxability of gratuity and Provident Fund (PF) amounts received after retirement, particularly concerning Form 16. Gratuity paid by the company is typically included and shown as exempt income under deductions. However, PF amounts, even if managed by a company's trust, are generally not shown in Form 16 as they are considered paid by the PF authority or the trust as a separate legal entity, not directly by the company.

Rajesh2345

Rajesh2345 (Querist)
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15 December 2022 Hi,

will company put the gratuity and PF amount in Form 16 when they give it after retirement?
if yes then how it will be excluded from income tax.

Thanks.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 December 2022 Only gratuity paid by the company included and shown under deductions as exempt income.
PF is paid by PF authority not by the company hence not to be shown.

Rajesh2345

Rajesh2345 (Querist)
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15 December 2022 my PF is maintained by Trust which is formed in the company so I guess, it will not be paid by PF Authority but the Trust. In this case whether the payment will be shown in Form 16 ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 December 2022 Trust is a separate legal entity so it will not be shown.

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