Gratuity - [Section 10(10)]

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..... ble in the hands of employee. While if gratuity is received in case of death or retirement or resignation, then exemption is available up to the following limits: In case of Government employee {Section 10(10)(i))} - Any gratuity received by an employee of Central Government, State Government or local authority is wholly exempt from tax. This exemption is not available to employees of Statutory Co .....

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..... Payment of Gratuity Act,[ Section 10(10)(iii) ] an amount equal to the least of the following will be exempt from tax: x Average salary of last 10 months preceding the month of retirement x Completed year of service (fraction of a year is ignored) Amount specified by the central government Rs. 10,00,000/- [ From 24th May, 2010 to 28th March, 2018 ( Notification No. 43/2010 ) ] Rs. 20,00,000 [ Fro .....

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..... yee exist, if such relationship does not exist then the exemption shall not be available. Forfeiture of Gratuity: According to the Payment of Gratuity Act of 1972, an employer holds the right to forfeit their gratuity payment, either wholly or partially despite the employee having completed 5 and more years of service in a company. The only situation where this works is when the employee has been .....

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