Treatment of Gratiuty received from employer after layoff

ITR 178 views 3 replies

Hi,

I lost  my job during the peak of COVID crisis in Dec 2020. My employer paid me Gratuity amount in August 2021. Now when filing for taxes for FY 2021-22, I am not sure if the gratuity amount I received is tax exempted. I was jobless for months of Dec 2020, Jan 2021 and part of Feb 2021. Not sure if I can apply for deductions under section 10(10). The amount I received is less than 3 lakhs. Interestingly the employer has not deducted TDS on the Gratuity amount . It would really help if someone can guide me on this. Thanks in advance !!

Replies (3)

 The gratuity amount up to Rs. 20 lakh is exempt from tax for employees that are covered under the Payment of Gratuity Act. However, if you are not covered under this act, the maximum gratuity payable is capped at Rs.10 lakh.

Thank you so much for the reply. Since the amount is much less than 10 lakhs, I think I can apply for deductions under Section 10(10) for the gratuity received.

Correct...                                


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details