Hi,
The income tax exemption of gratuity was till 3.5 lakhs. Can anyone please inform me whether there has been any latest amendment on the limit, i.e., whether it has been increased?
Moreover, is there any site where the latest amendments and updates in different statutory compliances can be found? Please help.
Regards,
Ranjini
From India, Calcutta
Acknowledge(0)
Amend(0)
The income tax exemption of gratuity was till 3.5 lakhs. Can anyone please inform me whether there has been any latest amendment on the limit, i.e., whether it has been increased?
Moreover, is there any site where the latest amendments and updates in different statutory compliances can be found? Please help.
Regards,
Ranjini
From India, Calcutta
Acknowledge(0)Amend(0)
As of now, the exemption limit for gratuity is Rs. 3.5 lakhs only under the Income Tax Act.
In my opinion, it is better to check the websites of various ministries or relevant government departments to get the latest legal updates by way of notifications and circulars.
Hope this would help you.
Thanks & Regards,
Avika
From India, New Delhi
Acknowledge(0)Amend(0)
118In my opinion, it is better to check the websites of various ministries or relevant government departments to get the latest legal updates by way of notifications and circulars.
Hope this would help you.
Thanks & Regards,
Avika
From India, New Delhi
Acknowledge(0)Amend(0)
dear rajani gratuity paid as per the provisions of gratuity act is exempted from income tax.the limit is still 3.5 lacs. regards js malik
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear All,
Gratuity, EL encashment, PF withdrawal, and LIC, etc., will all be taxable if the new IT code comes into effect. I have started a new thread requesting members to review the new code and submit their objections and reservations to the FinMin, which has invited public opinion on the new code.
I am repeating my message... please review it and take appropriate action.
The new Income Tax code, with the new slab of 10% tax up to 10 lakhs income, is not as attractive as the headline says. The gross income under the new computation of income is much higher than the existing one for the same salary you are earning because non-taxable allowances like HRA are taxable under the new regime. In fact, when I calculated my current salary using the new formula, I ended up with an IT liability double of what I am paying now!
This new slab, along with this calculation procedure and other unknown formulas, is not beneficial to the salaried class. Honestly, the existing pattern is less taxing.
Under the new tax code:
- HRA is taxable.
- Interest paid on Housing loan is not exempted.
- Medical reimbursement, LTA are taxable.
- EPF, Leave encashment, and gratuity upon retirement are taxable.
There are many more changes. You will pay more tax when you earn, and you will pay tax again when you retire!
As usual, this Government has come up with an idea to deceive the entire salaried class. They will collect more direct tax under this 10% slab than what they are collecting now.
The Finance Ministry has invited suggestions and comments at: directtaxescode-rev@nic.in
Please submit your reservations immediately so that the Government reconsiders before implementing the new code. You may also encourage your company employees and other friends to send their reactions/reservations to the provided email address.
Thank you.
N. Ramamurthy
From India, Bangalore
Acknowledge(0)Amend(0)
Gratuity, EL encashment, PF withdrawal, and LIC, etc., will all be taxable if the new IT code comes into effect. I have started a new thread requesting members to review the new code and submit their objections and reservations to the FinMin, which has invited public opinion on the new code.
I am repeating my message... please review it and take appropriate action.
The new Income Tax code, with the new slab of 10% tax up to 10 lakhs income, is not as attractive as the headline says. The gross income under the new computation of income is much higher than the existing one for the same salary you are earning because non-taxable allowances like HRA are taxable under the new regime. In fact, when I calculated my current salary using the new formula, I ended up with an IT liability double of what I am paying now!
This new slab, along with this calculation procedure and other unknown formulas, is not beneficial to the salaried class. Honestly, the existing pattern is less taxing.
Under the new tax code:
- HRA is taxable.
- Interest paid on Housing loan is not exempted.
- Medical reimbursement, LTA are taxable.
- EPF, Leave encashment, and gratuity upon retirement are taxable.
There are many more changes. You will pay more tax when you earn, and you will pay tax again when you retire!
As usual, this Government has come up with an idea to deceive the entire salaried class. They will collect more direct tax under this 10% slab than what they are collecting now.
The Finance Ministry has invited suggestions and comments at: directtaxescode-rev@nic.in
Please submit your reservations immediately so that the Government reconsiders before implementing the new code. You may also encourage your company employees and other friends to send their reactions/reservations to the provided email address.
Thank you.
N. Ramamurthy
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Income Tax -Transport Allw.exemption increased..docx
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
Income Tax Calculator.xls