What is the taxability of Gratuity under Income Tax Act 1961 of India?
In the hands of a Government employee , Gratuity receipts are exempt from tax [ Section 10(10)(i) of Income Tax Act ]
In the hands of non-Government employee, Gratuity is exempt subject to the limits prescribed in this regard [Section 10(10)(ii) and Section 10(10)(iii) of Income Tax Act .]
[ Maximum Limit of Rs. 10,00,000 has been specified as the limit in case of retirement, etc., on or after 24-5-2010 vide Notification No. SO 1414(E), dated 11-6-2010 ]