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One of our employee resigned and we have paid him the Gratuity applicable as per the law. He has rejoined with us in the same financial year after 3 months of resignation. My question is whether the Gratuity we have paid is taxable or non taxable ?
If it is taxable then please quote relevant case law or the section ?


If the gratuity paid amount is less than 10 lakh then it is tax free.
From India, Pune
Thank you Prashantji for your valuable inputs.
But my question is that employee is rejoining with us on the same position and on company role, then in that case whether the amount paid by him is taxable ?
I want to know whether there is any case law wherein employee is getting Gratuity and joining again in the same financial year.


Thank you Prashantji for your valuable inputs.
But my question is that employee is rejoining with us on the same position and on company role, then in that case whether the amount paid by him is taxable ? - No, please refer Income Tax Act
I want to know whether there is any case law wherein employee is getting Gratuity and joining again in the same financial year. - Why you need case law for this?

From India, Pune
Dear Joshi, you have already paid Gratuity Amount.Now, you want to know, whether it is Taxable or not? What is the amount of Gratuity paid is not mentioned? as already posted by Honoured member, the question of Tax does not arise up to Rs10 Lakhs
You have Re Hired the Employee, no issues? But, you are mentioning that Employee has Rejoined.This Joining is without continuity of Service.Please treat him as New Joinee

From India, New Delhi
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