Gratuity Payment


Please can you advise if the payment received from my previous employer as Gratuity will be taxable? If yes, is it the responsibility of the previous employer to deduct tax at source or am I liable to pay tax on Gratuity speratly?

Lastly, even if this payment is not taxable, do I need to show it anywhere in my IT return, etc. ?



asked Apr 21 '13 at 17:55 by Anks 462410

If amount is received before completion of five years of service with employer, it should be taxable.

Gratuity should not be taxable upto Rs 10 lakh if five years are completed for private sector employees. Govt. sector employees has no upper limit as such and is fully exempt.

Employer may not deduct tax on same due to full and final partial year computation, so its the employee's responsibility to compute taxes and pay same himself.

If amount is non-taxable, there is no need to show same in ITR.

answered Apr 22 '13 at 12:05 by Pankaj Batra 5.2k320


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Asked: Apr 21 '13 at 17:55

Seen: 1,543 times

Last updated: Apr 22 '13 at 12:07