20 June 2024
I left my organisation in April 2023 and received a gratuity from them for more than five years of service. Since the gratuity was paid is May 2023 it has got added to my current year income (FY 2023-24). After gratuity exemption under sec 10, the taxable portion of gratuity led to a tax slab change. Since gratuity is an income for past services, should it not be taxed in the earlier tax slab ? Is Form-10E applicable in my case to claim relief ?
20 June 2024
Yes.. If it is taxable in the year of retirement/receipt. The CBDT Notification no. S.O. 1213(E), dated 8 March 2019, states that the tax exemption on gratuity to an upper limit of Rs 20 lakh is made available to employees if the employee resigns or disabled, or retires or dies on or after 29 March 2018.
20 June 2024
Thanks Sir for your response. Can you clarify one more point. Form 10 E has a section for gratuity, in which case is that applicable to claim relief on gratuity income ?
CAclubindia
