maximum amount of exemption under gratuity act

Government has proposed to raise income tax exemption limit for gratuity funds to Rs 10 lakh from the present Rs 3.5 lakh for both government and private sector employees consequent on implementation of sixth pay commission report which fixed the maximum limit of gratuity that payable to Central Government employees at Rs.10 lakhs against the earlier limit of Rs. 3.5 lakhs.

After Amendments in Gratuity Act ,

IT Dept Also Announced of exemption Limit of Rs. 10 Lacs......Maximum..

Provided Figure to be Put in Calculations.

I Mean (1) Amount Received

(2) 10 Lacs

(3) No of Year Worked*15/26.Like This....

Lower of Above Allowed.

But This is WEF 24/05/2010.

U/S 10(10)(ii)

PRESS RELEASE DATED 11.6.2010

CBDT HAS APPROVED NOTIFICATION OF RS 10 LAKH AS MAXIMUM AMOUNT ENTITLED FOR EXEMPTION U/S 10(10)iii).

ANY PERSON WHO RETIRES ON OR AFTER 24.5.2010 ARE ELIGIBLE TO CL