Tax on gratutiy arrear received

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If you received an additional gratuity payment due to a wage revision after your retirement, you are likely not liable for tax on this extra amount. This is because the additional payment is a result of an enhanced limit that became applicable only after your retirement date. It's advisable to check if any tax was deducted on this specific payment.

P V Paulose

P V Paulose (Querist)
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17 July 2021 i was a public sector employee and retired in Jan 2018 and received gratuity of Rs 10 lacs and now received Rs 6 lacs due to wage revision . The taxable limit at the time of retirement was 10 lacs and now 20 lacs
Am i liable to tax for the addition received now

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 July 2021 You are not liable to tax for the additional gratuity received now. The additional amount is due to pay revision payable due only after enhanced limit. Check any tax deducted on such payment.

CA Rajat Pathak

CA Rajat Pathak (Expert)
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18 July 2021 Not liable to tax for additional amount

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