Is PF And Gratuity Taxable?

Archana.esharma2013@gmail.com
Is PF and Gratuity taxable ?
Please help.
Samuel R
Hi,
Under the Provident Fund scheme, it is notified that - Any payment made to an employee from a provident fund to which Provident Fund Act, 1925 applies or from any other provident fund set up by the central government and notified by it in this behalf, is exempt from tax.
Gratuity - Taxability of gratuity depends on the recipient.
*For a government employees there is no tax on the gratuity.
*For private sector employees, if they are covered under the Payment of Gratuity Act, 1972, then the gratuity is exempt from tax subject to a maximum of Rs 10 lakh or 15 days salary for each completed year of service (or part thereof).
kumaracme
There is recent amendment in EPF Act, where a person gets his EPF Contribution which is less than 50,000/- and/or less than five years of service is taxable under Income tax Act and the EPF Authority will recover TDS on the final payment EPF amount of a member.
Srinath Sai Ram
Please note that EPF Withdrawal Amount of Rs50,000/- attracts TDS, if EPF Membership is less than 5 Years.
Gratuity Payment up to Rs10 Lakhs is exempted under The Payment of Gratuity Act, 1972
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