What amount of exemption is available under section 10(10) of I T Act ? Date of Retirement: 31 December 2017. Length of service 36 years. Amount of gratuity received : Rs. 26 lakh. Employee not covered under Payment of Gratuity Act. Last 10 months average Basic Salary + DA+ Rs. 130000.
1 Answers
Hi,
For AY 2018-19, the threshold limit is Rs 20 lakh.
For private employees not covered under the payment of Gratuity Act of 1972, any gratuity received is tax exempted to the extent least of the following:
- Statutory limit of Rs.10 lakhs Rs 20 Lakh .
- Gratuity = Average salary x ½ x No. of years of service.
- Actual gratuity received by you.
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