I understand that, as per the recent government notification, the income tax exemption limit on the gratuity amount payable to non-Central government employees retiring on or after 25/05/2010 has been raised from Rs. 3.5 lakhs earlier to Rs. 10 lakh. While this exemption is available to Central government employees retiring on or after 01.01.2006 itself.
If this understanding is correct, then it means that the gratuity amount in excess of Rs. 3.5 lakhs, in respect of non-Central government employees retiring between 01.01.2006 and 24.05.2010, will attract income tax. Is this not very strange, shocking, and horrifying? How can our Indian Constitution allow—for the same retirement date—different income tax exemption limits on the gratuity amount payable on retirement to (1) Central Government employees and (2) non-Central government employees? Are the non-Central government employees not really 'Indians' or are they 'inferior' Indians? Is the principle of 'Natural Justice' not applicable in this case?
In my opinion, the term "Unjust Law," which I believe was used by Mahatma Gandhi for some laws made by the British, will truly fit in the above-narrated case if indeed the gratuity amounts in excess of Rs. 3.5 lakhs (up to Rs. 10 lakh) payable to non-Central government employees retiring between 01.01.2006 and 24.05.2010 are attracting income tax while it is totally exempt in the case of Central government employees. Why can't this situation be corrected?
If this understanding is correct, then it means that the gratuity amount in excess of Rs. 3.5 lakhs, in respect of non-Central government employees retiring between 01.01.2006 and 24.05.2010, will attract income tax. Is this not very strange, shocking, and horrifying? How can our Indian Constitution allow—for the same retirement date—different income tax exemption limits on the gratuity amount payable on retirement to (1) Central Government employees and (2) non-Central government employees? Are the non-Central government employees not really 'Indians' or are they 'inferior' Indians? Is the principle of 'Natural Justice' not applicable in this case?
In my opinion, the term "Unjust Law," which I believe was used by Mahatma Gandhi for some laws made by the British, will truly fit in the above-narrated case if indeed the gratuity amounts in excess of Rs. 3.5 lakhs (up to Rs. 10 lakh) payable to non-Central government employees retiring between 01.01.2006 and 24.05.2010 are attracting income tax while it is totally exempt in the case of Central government employees. Why can't this situation be corrected?