IT Exemption on Gratuity – 20 lakhs w.e.f. 29.3.2018
Income tax exemption for gratuity increased from Rs.10 lakhs to 20 lakhs w.e.f. 29.3.2018
Ministry of Finance has enhanced the income tax exemption for gratuity under section 10 (10) (iii) of the Income Tax Act, 1961 to Rs. 20 lakhs. Shri Santosh Kumar Gangwar, Minister of State for Labour and Employment has expressed hope that this would benefit those employees of PSUs and other employees not covered by Payment of Gratuity Act, 1972 and has thanked the Finance Minister for enhancing the exemption limit.
The ceiling of Gratuity amount under the Payment of Gratuity Act, 1972 has been raised from time to time keeping in view over-all economic condition and employers capacity to pay and the salaries of the employees, which have been increased in private sector and in PSUs.
The latest such enhancement of ceiling of gratuity was made vide Government of India Notification dated 29.03.2018 under which the gratuity amount ceiling has been increased from Rs.10 lakhs to 20 lakhs w.e.f. 29.3.2018.
Related to Your Search:
- Income Tax Exemption Limit Raised by Rs.50,000 – Does it meet the Central Government employees’ expectations?
- Upper Ceiling on Gratuity 20 Lakhs – Gratuity Bill Passed by Parliament
- Raise Income Tax Exemption Slab to Rs. 5 Lakhs: NC JCM Staff Side
- Benefit from the Income Tax sops announced by the Government..?
- Central Government is planning to raise the Income Tax exemption slab to Rs. 5 Lakhs
- Gratuity payment ceiling to double to Rs 20 lakh; Unions support government decision
- Payment of Gratuity (Amendment) Act, 2018 brought in force on 29th March, 2018
- Central government to change the ceiling for tax free gratuity
- Clarification to pensioners about the hike in exemption limit to Rs 3 Lakhs from Minister of State for Finance