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Graduity exemption

Deepak (Financial Analyst ) (27 Points)

28 December 2020

One of my client resigned from job in Nov 2019. He was eligible for graduity Rs. 350308/- out of this he received Rs. 244000/- before 31st Mar 2020 and balance received in current financial year.
So which amount need to reflected in form 16 Rs. 350308 or 244000 as exemption u/s 10(10) towards graduity for FY 2019-20?

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6 Replies

ayusmita (Tax consultant) (5890 Points)
Replied 28 December 2020

None. Of the amount will show in itr while filling

And regarding form 16 it's given by his or her company and the value will be same as the company gives

Deepak (Financial Analyst ) (27 Points)
Replied 28 December 2020

Employer need to know which figures to be written in form 16 in exemption column

ayusmita (Tax consultant) (5890 Points)
Replied 28 December 2020

As per your saying
gratuity received 244000
gratuity eligible 350308
20 lakh as per amendment or 10 lakhs as per previous
which ever is less is taken
in your case 244000
now again exemption limit is 20 lakh as per amendment and 10 lakh as per previous
so fully exempted as per it return
if you're employer wants to show it in form 16 then add the least amount in salary
after that allowances exempted under section 10 deducut the same amount to get the gross salary

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