It is Been Stated that person getting gratuity after 24th may 2010 is subject to the limit of rs.10 Lacs( Other than govt. employee or POGA employee ) So my Question is What will be the new limit to POGA Employee ?
As computed Gratuity for Govt. Employee is Exempt from Tax.
hi narendera
As per section 10(10)(ii) of income tax act income does not include
" any gratuity received under the Payment of Gratuity Act, 1972 (39 of 1972), to the extent it does not exceed an amount calculated in accordance with the provisions of sub-sections (2) and (3) of section 4 of that Act ;
It only gives the limit as mentioned in the sec 4 of Gratuity Act. Therefore once the Gratuity Act is amended, the exemption limit is automatically revised.
In short you mean that POGA employees will also enjoy higher exemtion limit of rs.10lacs
yes
CAclubindia
