I changed my job in the month of July 2005 from a PSU where i as working for over 10 years. I received gratuity as terminal benefit . I also withdrew my entire PF balance with the employer, on leaving thejob. I joined another job where my PF is being deducted regularly. Thus for FY2006 i will have my Form 16 from two employers.
Please let me know
whether gratuity is exempt from tax
whether PF withdrawal is taxable.
thanks and regards
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PF withdrawal tax
Replies (1)
Gratuity--- least of following will exempt @
1.Rs.3,50,000
2.Gratuity received
3.15*(salary last drawn/26)*10/11#(#if u have served more than six months in a 11th year )
So in your case
Assumed that Basic salary is rs.20000p.m.+da rs.2000p.m.
1.Rs.3,50,000
2.Rs.2,00,000(assumed to be received)
3.Rs.{15*(Rs.22000/26)}*11=Rs.139615
so least of above Rs.1,39,615 will be exempt
@ provided u r governed by payment of gratuity act 1972
PF-pf will be exempt for the 2006-07
1.Rs.3,50,000
2.Gratuity received
3.15*(salary last drawn/26)*10/11#(#if u have served more than six months in a 11th year )
So in your case
Assumed that Basic salary is rs.20000p.m.+da rs.2000p.m.
1.Rs.3,50,000
2.Rs.2,00,000(assumed to be received)
3.Rs.{15*(Rs.22000/26)}*11=Rs.139615
so least of above Rs.1,39,615 will be exempt
@ provided u r governed by payment of gratuity act 1972
PF-pf will be exempt for the 2006-07
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