CA.Varalakshmi.M (Manager-Finance) (482 Points)
28 February 2012Dear all,
Please clarify me regarding following.
Gratuity exemption limit of 10lakhs applicable from which Assessment year.
RAMESH CHANDRA SHARMA
(munka istentisztelet)
(899 Points)
Replied 28 February 2012
W.E.F A.Y 2011-12.....CORRECT ME IF I AM WRONG....
Anumanchipalli Sathikonda
(Tax Consultant)
(1349 Points)
Replied 29 February 2012
Ms.Varalakshmi
and
Mr.Rmesh C.s.
The enhanced ceiling limit of Rs.10,00,000/- is only applicable for the gratuity received u/s 10(10)(ii) of Income-tax act, 1921 received on or after 24-05-2010 but not for the enitire previous year i.e. 1-4-2010 to 31-03-2011 relevant to the assessment year 2011-12 for the reason the amendment made to payment of grautiy act has come into force only on 24-05-2010 as per the gazette notification of the central governemnt.
I am hereuder reproducing the gazette notification.
GAZETTE OF INDIA
Extraordinary, Part II Section 3 (ii)
Ministry of Labour & Employment
Notification
New Delhi,dated 24th May 2010
S.O. 1217 (E) : In exercise of the powers conferred by sub-section (2) of Section 1 of the The Payment of Gratuity (Amendment) Act, 2010 (15 of 2010), the Central Government hereby appoints the 24th day of May, 2010, as the date on which the said Act shall come into force.
(F.No.S-42012/1/2008 – SS.ii (Vol.II)
S.K.Srivastava, Additional Secretary
GAZETTE OF INDIA
Extraordinary, Part II Section 1
Ministry of Law & Justice, (Legislative Department)
New Delhi,dated 18th May 2010
The following Act of Parliament received the assent of the President on the 17th May 2010, and is hereby published for general information: -
THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010
(NO. 15 OF 2010)
(17th May 2010)
An Act further to amend the Payment of Gratuity Act, 1972.
BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:-
1. (1) This Act may be called the Payment of Gratuity (Amendment) Act, 2010
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
2. In Section 4 of the Payment of Gratuity Act, 1972, in sub-section (3), for the words "Three Lakhs and fifty thousand rupees", the words "Ten Lakhs" shall be substituted.
V.K. BHASIN
Secretary to Government of India
Best Wishes
Sathikonda
CAclubindia
