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tax free gratuity limit    Click here to Write Reply
sir

what is the limit for tax free gratuity in case of government non government employees

thanks
Post by - agam , Mar 28 2018 3:59PM Last Post By - ramesh bhatia Mar 28 2018 4:01PM


Reply by - ramesh bhatia , Mar 28 2018 4:01PM
exemption in relation to gratuity is discussed below:

Gratuity received by a government employee is fully exempt from tax. The maximum amount they can receive is Rs 20 lakh as per amendments made following the 7th Pay Commission recommendations.

The Payment of Gratuity (Amendment) Bill 2017 was passed in the Lok Sabha and  by the Rajya Sabha in march 2018. This Bill seeks to amend the Payment of Gratuity Act 1972. The bill has cleared the way to increase the tax-free limit of gratuity payable to an non-govt. employee from the existing ceiling of Rs 10 lakh to Rs 20 lakh.( However the Presidential assent and publication in the Official Gazette is still pending). The Gratuity Amendment Bill which got passed by the Rajya Sabha will come into force on such date as the Central government may notify in the official gazette after the assent of the President.