Dear Members,
How many times an employee can get tax exemption on gratuity ?
Example No.1 an employee got gratutity of 10 lac and got exempton, can also get exemption from second employer on gratuity ?
Example No. 2, an employee got gratuity 4lac from one employer, 5lac from second employer and 3lac from third employer, how will he get tax exemption, total gratuity is 12lac (will get exemption from all employer or from first employer or 9lac from first two and one lac from third )?
Kindly provide your valuable comments.
Regards,
From India, Delhi
7How many times an employee can get tax exemption on gratuity ?
Example No.1 an employee got gratutity of 10 lac and got exempton, can also get exemption from second employer on gratuity ?
Example No. 2, an employee got gratuity 4lac from one employer, 5lac from second employer and 3lac from third employer, how will he get tax exemption, total gratuity is 12lac (will get exemption from all employer or from first employer or 9lac from first two and one lac from third )?
Kindly provide your valuable comments.
Regards,
From India, Delhi
Dear Friend,
General practice employee can't get gratuity in two or more times in one financial year , to my knowledge it is not impossible since he has to work at least one year in that particular company..... Generally companies will gives gratuity 5 years of continues services. Some companies are giving 3 years of continues service it is all depend on the companies policy. As per Act .... employee is eligible after completion of 5 years of service.
To my knowledge Rs. 10 Lakhs exemption in a particular financial year, for example if an employee got gratuity from X company , after couple of years he got again gratuity he is still eligible for exemption.
Note that he is taking in different financial years.......
If you want appropriate answer please wait some more time our seniors will give you accurate answer........
I wish you all the best.
From India, Hyderabad
General practice employee can't get gratuity in two or more times in one financial year , to my knowledge it is not impossible since he has to work at least one year in that particular company..... Generally companies will gives gratuity 5 years of continues services. Some companies are giving 3 years of continues service it is all depend on the companies policy. As per Act .... employee is eligible after completion of 5 years of service.
To my knowledge Rs. 10 Lakhs exemption in a particular financial year, for example if an employee got gratuity from X company , after couple of years he got again gratuity he is still eligible for exemption.
Note that he is taking in different financial years.......
If you want appropriate answer please wait some more time our seniors will give you accurate answer........
I wish you all the best.
From India, Hyderabad
Dear Telikepalli,
Thanks for sharing your knowledge. Agreed to above and I also should have clarified the length of services in all employer, however, the basic question is, one has already qualified the entitled length of services in each organization and till retirement has changed above 3jobs and got the same amount of gratuity, means first gratuity
got in the year 1990, second in 2002 and last in 2010 in three different organization. Now what would be exemption scene ?
Best Regards,
From India, Delhi
Thanks for sharing your knowledge. Agreed to above and I also should have clarified the length of services in all employer, however, the basic question is, one has already qualified the entitled length of services in each organization and till retirement has changed above 3jobs and got the same amount of gratuity, means first gratuity
got in the year 1990, second in 2002 and last in 2010 in three different organization. Now what would be exemption scene ?
Best Regards,
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Tax Exemption (SUPERB).doc
P. TAX EXEMPTION NOTIFICATION - CHHATTISGARH.pd f