Income tax on Gratuity Arrears paid after the Gratuity Limit Increased to Rs.10/-Lacs
Respected sir, 04/04/2011
I am a retired Bank official retired on 30/09/2009.At the time of my retirement the exemption limit for Gratuity was Rs.3.5/lacs.However due to wage revision i got arrears of Gratuity Rs.151000/-In the month of Aug 2010 by which time Gratuity Exemption limit was raised to Rs.10,00 000/- Whether gratuity arrears of Rs.151000/- received by me in Aug,2010 is taxable? My total Gratuity amount received is less than Rs.10/- Lacs
Second query I paid Rs.606001/- by way contribution towards Pension fund to avail Pension option which was compulsory if u want to exercise second option of pension.This is applicable to all employees who now opted for pension has to contribute 56% of the banks contribution they received which also has to be refunded.
Pl note i had to pay Rs.10,21,858 Banks' contribution + Rs.5,72,274/- 56% of Bk's contribution i.e employee’s own contribution as purchase price
Total Rs.1594098/-
But this amount was adjusted against Rs.714089 Commutation (non taxable) payable to me and Rs.274008/- Pension arrears (Taxable) payable to me up to oct 2010 and I paid net amount of Rs.606001/- towards the purchase price of Pension
Question is whether we can claim exemption for the arrears amount we received by way of pension? In my case I received Pension of Rs.274008/- up to Oct 2011 and I paid Rs.606001/- towards pension cost..
Since the year ending is very close i request u to assist me in the matter at your earliest. This will be useful to all employees in the Banking Industy who opted for second option of pension
with regards
RHR MUMBAI