IT Exemption on Gratuity – 20 lakhs w.e.f. 29.3.2018

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

Income tax exemption for gratuity enhanced Up to Rs. 20 lakhs

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.

Source: PIB

Gazzette Notification: Exemption u/s 10 of Income Tax - Rs. 20 Lakh for Gratuity w.e.f. 29.03.2018

असाधारण

EXTRAORDINARY

भाग 1---खण्ड 3---उप-खण्ड (॥)

PART II—Section 3—Sub-section (ii)

प्राधिकार से प्रकाशित

PUBLISHED BY AUTHORITY

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सं. 1079] No. 1079]

नई दिल्‍ली, शुक्रवार, मार्च 8, 2019/ फाल्गुन 17, 1940 NEW DELHI, FRIDAY, MARCH 8, 2019/ PHALGUNA 17, 1940

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वित्त मंत्रालय

(राजस्व विभाग)

(केंद्रीय प्रत्यक्ष कर बोर्ड)

अधिसूचना

नई दिल्‍ली, 8 मार्च, 2019

(आयकर)

का.आ. 1213(अ).---आयकर अधिनियम, 1961 (1961 का 43) की धारा 10 के खंड (10) & STE (iii) द्वारा प्रदत्त शक्तियों का प्रयोग करते हुए, और वित्त मंत्रालय के राजस्व विभाग की अधिसूचना सं.का.आ. 141(अ) दिनांकित 11 जून, 2010 के अधिक्रमण में, ऐसे अधिक्रमण से पूर्व की गई अथवा किए जाने के लिए छूट गई वस्तुओं को छोड़कर, केंद्र सरकार कर्मचारियों को देय किसी भी उपदान (ग्रेच्यूटी) की अधिकतम राशि के संबंध में एतद् द्वारा उन कर्मचारियों के संबंध में जो 29 मार्च, 2018 को या उसके बाद सेवानिवृत्त या ऐसी सेवानिवृत्ति से पूर्व असमर्थ हो जाते हैं या मृत्यु हो जाती है, या जिनका नियोजन उक्त तारीख को या उसके बाद समाप्त कर दिया गया है तो उक्त उपखंड के प्रयोजनार्थ बीस लाख रूपए की सीमा को विनिर्दिष्ट करती है।

[अधिसूचना सं. 16/2019/फा. सं. 200/8/2018-आईटीए-]

राजाराजेश्वरी आर, अवर सचिव

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 8th March, 2019

(Income-tax)

S.O. 1213(E).—In exercise of the powers conferred by sub-clause (iii) of clause (10) of section 10 of the Income-tax Act, 1961 (43 of 1961), and in supersession of Ministry of Finance, Department of Revenue, notification number S.O. 141(E), dated the 11th June, 2010, except as respects things done or omitted to be done before such supersession, the Central Government, having regard to the maximum amount of any gratuity payable to employees, hereby specifies twenty lakh rupees as the limit for the purposes of the said sub-clause in relation to the employees who retire or become incapacitated prior to such retirement or die on or after the 29th day of March, 2018 or whose employment is terminated on or after the said date.

[Notification No. 16 /2019/F. No. 200/8/2018-ITA-I]

RAJARAJESWARI R., Under Secy.