Tax on gratuity received on retirement
This query is : Resolved
03 June 2012
Dear Sir,
I retired in January,2012.My birth date is 26th Jan. Gratuity received by me on Feb,2012.Is my Gratuity Taxable,as I am 60 on the date I received my Gratuity. Can I file Income tax returns and claim a refund of tax deducted? Kindly advise. If I am wrong in claiming this,please enlighten me.
Narayan
I retired in January,2012.My birth date is 26th Jan. Gratuity received by me on Feb,2012.Is my Gratuity Taxable,as I am 60 on the date I received my Gratuity. Can I file Income tax returns and claim a refund of tax deducted? Kindly advise. If I am wrong in claiming this,please enlighten me.
Narayan
03 June 2012
Gratuity received is exempt(Maximum Rs.10,00,000/-) subject to the fulfillment of condition of Section-10(10) of the Income Tax Act,1961, It doesn't matter what is your age
03 June 2012
dear sir,
could you please elaborate what Section-10(10) of the Income Tax Act,1961 embodies and whether I can claim a refund of tax deducted from my Jan'2012 salary, wherein Gratuity taxable was clubbed with my regular
income of the year from 1/4/11 to 31/1/12.
please reply,Sir.
Narayan
could you please elaborate what Section-10(10) of the Income Tax Act,1961 embodies and whether I can claim a refund of tax deducted from my Jan'2012 salary, wherein Gratuity taxable was clubbed with my regular
income of the year from 1/4/11 to 31/1/12.
please reply,Sir.
Narayan
05 June 2012
Taxability of the Gratuity Received
1. Any death cum retirement gratuity received by Central and State Govt. employees, Defense employees and employees in Local authority shall be exempt.
2. Any gratuity received by persons covered under the Payment of Gratuity Act, 1972shall be exempt subject to following limits:-
o For every completed year of service or part thereof, gratuity shall be paid at the rate of fifteen days wages based on the rate of wages last drawn by the concerned employee.
o The amount of gratuity as calculated above shall not exceed Rs. 10,00,000/-
3. In case of any other employee,
Gratuity received shall be exempt, subject to the following exemptions
o Exemption shall be limited to half month salary (based on last 10 months average) for each completed year of service or Rs. 10 Lakhs whichever is less.
o Where the gratuity was received in any one or more earlier previous years also and any exemption was allowed for the same, then the exemption to be allowed during the year gets reduced to the extent of exemption already allowed, the overall limit being Rs. 10 Lakhs.
Please visit my page "ckbajpai.blogspot.com"
1. Any death cum retirement gratuity received by Central and State Govt. employees, Defense employees and employees in Local authority shall be exempt.
2. Any gratuity received by persons covered under the Payment of Gratuity Act, 1972shall be exempt subject to following limits:-
o For every completed year of service or part thereof, gratuity shall be paid at the rate of fifteen days wages based on the rate of wages last drawn by the concerned employee.
o The amount of gratuity as calculated above shall not exceed Rs. 10,00,000/-
3. In case of any other employee,
Gratuity received shall be exempt, subject to the following exemptions
o Exemption shall be limited to half month salary (based on last 10 months average) for each completed year of service or Rs. 10 Lakhs whichever is less.
o Where the gratuity was received in any one or more earlier previous years also and any exemption was allowed for the same, then the exemption to be allowed during the year gets reduced to the extent of exemption already allowed, the overall limit being Rs. 10 Lakhs.
Please visit my page "ckbajpai.blogspot.com"
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Building and other construction workers welfare cess act 1996
- Eway bill for machinery reparing
- Gift of mutual fund units to daughter
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Form 10BD Filling
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Reporting of STCG on Property in ITR
- Error while filling exam form November 2026
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
