realated 2 gratuity
This query is : Resolved
23 June 2011
hi frnzz
i wanna ask ,
my uncle got retired from food corporation of india,in june 2008 n got 3,50,000/- as gratuity in july 2008. no TDS was deducted at that time.
now in october 2010, he got the arrears of gratuity amounting 2,44,000/- after revision of pay commision, , FCI deducted TDS on this amount .
my ques , is whether 244000 is taxable in AY 2011-2012, or will he get refund ?
plzz answer
i wanna ask ,
my uncle got retired from food corporation of india,in june 2008 n got 3,50,000/- as gratuity in july 2008. no TDS was deducted at that time.
now in october 2010, he got the arrears of gratuity amounting 2,44,000/- after revision of pay commision, , FCI deducted TDS on this amount .
my ques , is whether 244000 is taxable in AY 2011-2012, or will he get refund ?
plzz answer
24 June 2011
you have to check the amount u posted and the details of payment, graduity upto 10 L is exempted, but other retirement benefits are taxable,
24 June 2011
The Gratuity received on retirement is governed by the provisions of Section 10(10) of the Income Tax Act, 1961 and the same is exempted up to Rs. 10,00,000/-. The relevant amendment is given below:
The limit laid down under section 4(3) of the Payment of Gratuity Act, 1972 [as amended by the Payment of Gratuity (Amendment) Act, 2010, with effect from 24-5-2010] is Rs. 10,00,000.
As per you further Gratuity of 2244000/- has been received. I doubt that FCI officer gets this much gratuity after pay revision as the original gratuity is only 3,50,000/-. Kindly check the figures as given by you. In my opinion you have added one extra zero.If this be the case you can go for exemption as per the amendment and claim the refund of TDS. Every thing depends on your final figures.
The limit laid down under section 4(3) of the Payment of Gratuity Act, 1972 [as amended by the Payment of Gratuity (Amendment) Act, 2010, with effect from 24-5-2010] is Rs. 10,00,000.
As per you further Gratuity of 2244000/- has been received. I doubt that FCI officer gets this much gratuity after pay revision as the original gratuity is only 3,50,000/-. Kindly check the figures as given by you. In my opinion you have added one extra zero.If this be the case you can go for exemption as per the amendment and claim the refund of TDS. Every thing depends on your final figures.
24 June 2011
ya , i m really sorry ,i wrote wrong amount .
it was Rs 2,44,000 instead of Rs 22,44,000/,
nd my querry regarding this is , " whether he will get exemption u/s 10 (10) or will he ger sec 89 reief , as it is arrears of gratuity
it was Rs 2,44,000 instead of Rs 22,44,000/,
nd my querry regarding this is , " whether he will get exemption u/s 10 (10) or will he ger sec 89 reief , as it is arrears of gratuity
25 June 2011
If you go for arrear relief u/s 89 by applying 10(10) then the act which was prevailing in 2008 will apply. At that point of time the maximum limit was only 3,50,000/-. One more thing that relief u/s 89 is to be applied when. It is the payment which was made during the tenure of his and thereafter he is is paid further sum.
In your case no gratuity was paid while he was in employment. He was paid gratuity only after retirement and thereafter the enhancement amount was paid.
Now, after amendment of the provisions of payment of gratuity you can apply the current law then it is exempted otherwise if you apply 89 then it is taxable. The Income Tax Department will take the view that the tax should be paid on the basis of old act.
In your case no gratuity was paid while he was in employment. He was paid gratuity only after retirement and thereafter the enhancement amount was paid.
Now, after amendment of the provisions of payment of gratuity you can apply the current law then it is exempted otherwise if you apply 89 then it is taxable. The Income Tax Department will take the view that the tax should be paid on the basis of old act.
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25 June 2011
thanx sir
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