I undrestand that as per the recent Govt. notification, the income tax exemption limit on the gratuity amount payable to the non-Central Govt. employees retiring on or after 25/05/2010 , has been raised from Rs. 3.5 lakhs earlier to Rs.10 lakh, while this exemption is available to Central Govt. employees retiring on or after 01.01.2006 it self.
If this understanding is correct then it means that the gratuity amount in excess of Rs.3.5 lakhs,in respect of non-Central Govt. employees retiring between 01.01.2006 and 24.05.2010 will attract income tax. Is this not very strange, shocking and horrifying? How can our Indian Constitution allow - for the same retirement date- different income tax exemption limits on the gratuity amount payable on retirement to (1) Central Govt. Employees (2) the non-Central Govt. Employees ? Are the non-Central Govt. Employees not really 'Indians' or are they 'inferior' Indians ? Is the principle of 'Natural Justice' not applicable in this case ?
In my opinion the term "Unjust Law" ,which I believe was used by Mahtma Gandhi for some Laws made by the British, will truely fit in the above narrated case if indeed the gratuity amounts inexcess of Rs.3.5 laks(upto Rs.10 lakh) payable to the non-Central Govt. employees retiring between 01.01.2006 and 24.05.2010 is attracting income tax while it is totally exempt in the case of the Central Govt. employees. Why can't this situation be corrected ?
From India, Bhopal
If this understanding is correct then it means that the gratuity amount in excess of Rs.3.5 lakhs,in respect of non-Central Govt. employees retiring between 01.01.2006 and 24.05.2010 will attract income tax. Is this not very strange, shocking and horrifying? How can our Indian Constitution allow - for the same retirement date- different income tax exemption limits on the gratuity amount payable on retirement to (1) Central Govt. Employees (2) the non-Central Govt. Employees ? Are the non-Central Govt. Employees not really 'Indians' or are they 'inferior' Indians ? Is the principle of 'Natural Justice' not applicable in this case ?
In my opinion the term "Unjust Law" ,which I believe was used by Mahtma Gandhi for some Laws made by the British, will truely fit in the above narrated case if indeed the gratuity amounts inexcess of Rs.3.5 laks(upto Rs.10 lakh) payable to the non-Central Govt. employees retiring between 01.01.2006 and 24.05.2010 is attracting income tax while it is totally exempt in the case of the Central Govt. employees. Why can't this situation be corrected ?
From India, Bhopal
I retired from a PSU on 31/01/2010 and received gratuity of Rs. 10 lakhs. (3.5 Lakhs exempted from Income Tax and 6.5 lakhs non exempted from Tax). Gratuity was paid on the instruction of BPE after the implementation of new scale w.e.f. 1/01/2007). We request to Finance Minster, Govt. of India to take care of employees of PSUs who retired between 1/1/2007 to 24/05/2010. These employees are serving the nation as the employees of Central/State/Local bodies Govt.. PSUs are also run by the Govt. and their employees are also making their contribution for the growth of nation. Why the employees of PSUs are not treated at par with Central/State/Local Bodies employees in connection with Gratuity and tax exemption?
Will CITEMAN HR send our request to Finance Minister, Govt. of India?
ISHER KUMAR ARORA
From India, Delhi
3Will CITEMAN HR send our request to Finance Minister, Govt. of India?
ISHER KUMAR ARORA
From India, Delhi
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