Hi, I've resigned from my current organization and am eligible for Gratuity. This is the first time in my life I am receiving gratuity, and the amount receiving is below 2 lakhs. The leave encashment amount I am receiving is below 3 lakhs. I have read that these two are exempted from tax. The company has decided that they will not be exempting gratuity and leave encashment from tax since they will not be aware of my history and future with respect to these two. They have provided me the F&F, doing a TDS for these, and are waiting for my approval.
My questions are:
1. Can I get a refund of this while filing the returns for 2009-2010?
2. In that case, under what head is gratuity and leave encashment considered?
3. What all documents are required from the employer for getting the tax refund on these two? How must these amounts be mentioned in the respective documents?
Thanks in advance.
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My questions are:
1. Can I get a refund of this while filing the returns for 2009-2010?
2. In that case, under what head is gratuity and leave encashment considered?
3. What all documents are required from the employer for getting the tax refund on these two? How must these amounts be mentioned in the respective documents?
Thanks in advance.
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dear if you have got gratuity as per provisions of gratuity act than it is not taxable but leave encashment is taxable. regards jsmalik
From India, Delhi
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174From India, Delhi
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Gratuity - Taxation Issues.docx
PF Contribution on Leave Encashment - Clarification by EPFO.pdf