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Gratuity Section 10(10)

23 September 2020

If an government employee during his employment recieves gratuity is it exempt or taxable?Explain with reason.why taxable or why exempt?

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3 Replies

jacinthamary (accountant) (848 Points)
Replied 23 September 2020

Calculation of amount of gratuity exempted from tax

The least of the following is exempt from tax:

Last salary (basic + DA)* number of years of employment* 15/26;

Rs. 20 lakhs (which has been hiked from Rs. 10 Lakh as per the amendment);

Gratuity Actually received

Ritik Gupta (3 Points)
Replied 23 September 2020

Dear, your given provision is correct but sorry i not required the provisions and also it is not my question. i simply asked that in case of during the employment any Govt. employee recieved gratuity is it exempt?? if Yes then why?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 24 September 2020

Gratuity is payable to eligible Employee at the time of retirement or when Employee have resigned from an organisation,. During the employment gratuity is not payable.

So, there is no question of Exempt or taxable during the employment.