CA Dharmendra Shah (Proprietor) (29 Points)
30 December 2010Dear Sir,
whether increased gratuity limit (10 lakhs) shall be available to the assessee who retired from service of bank 2 years back and got the differential gratuity in the month of June , 2010 because of wage revision took place in April, 2010??
kindly post your commnents positively at the earliest!!
thanks a lot
regards
CA DH Shah
Balaji R K
(Salaried)
(158 Points)
Replied 30 December 2010
Mr Shah,
The amendment for the increase in the Gratuity exemption came into force form 24/05/2010. However there is no clarity on the time line from when this limit of Rs. 10/- is available to the assessee is not clear.
There are some open issues in terms of the date from which the higher limit is applicable and whether a separate clarification/notification will come from a tax perspective. The increase in limit has got the president during the month of May 2010 and we are hoping that the open issues will get clarified soon.
But to large extent people who are covered under the Gratuity Act, are presuming that this amendment is effective from 24/05/2010 only, which means employees retired on or after 24/05/2010.
Expecting clarity from the Central Government.
CAclubindia
