Income Tax on Gratuity Amount Above 20 Lakhs
The letter addresses a query regarding TDS on DCRG amounts exceeding Rs. 20 Lakhs.
According to Section 10(10)(i) of the Income Tax Act, death-cum-retirement gratuity under CCS(Pension) Rules is exempt from income tax.
Confusion arises from a 2019 notification specifying a Rs. 20 Lakhs limit for other gratuities, not applicable to death-cum-retirement gratuity.
Clarification confirms that such gratuity remains exempt from income tax for the previous year.
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