Hi Employers taxed on any gratuity amounts deducted from an employee’s CTC? Thank You In Advance.
From India, Hyderabad
From India, Hyderabad
What do you want to ask or convey? Is it whether gratuity can be deducted from the total cost to company or not? Or whether the amount of gratuity shown in the CTC is taxable or not?
First, there is no such concept called CTC in the eyes of law. Second, no employer will "deduct' gratuity from the remuneration payable to an employee, even though an amount s shown as gratuity as payable at the time of exit subject to some conditions. Third, the amount so mentioned is an amount after all the fixed payments are shown as included in the gross salary, and the same is not reflected anywhere in the form 16 issued by any employer.
From India, Kannur
4193First, there is no such concept called CTC in the eyes of law. Second, no employer will "deduct' gratuity from the remuneration payable to an employee, even though an amount s shown as gratuity as payable at the time of exit subject to some conditions. Third, the amount so mentioned is an amount after all the fixed payments are shown as included in the gross salary, and the same is not reflected anywhere in the form 16 issued by any employer.
From India, Kannur
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
P-TAX.csv