Sir, I have worked in a Govt of india U/Taking enterprise for around 15 years.I resigned and joined in a Public sector unit and presently working.I have received an amount more than INR 5 lakh of gratuity and more than INR 2 Lakhs as leave encashment. Please clarify whether The gratuity and leave encashment is taxable or not? If These are taxable,what is the procedure to pay IT? Are there any limits for exempting?
2 Answers
Gratuity should not be taxable upto Rs 10 lakh. Regarding leave encashment, it should be non-taxable fully for a Govt employee.
Ki Pankaj,
I think this 10lakh limit is for people working in private sectors. Govt. sector employees has no upper limit as such and is fully exempt.
Please advice.
It may not be applicable for Govt of India undertaking enterprise companies.
Related