Taxibility of gratuty
(Querist) 09 August 2010
This query is : Resolved
My friend retired in June 2009. At the time of retirement he got gratuty amount upto the ceiling.
Now act has been ammended and ceiling raised to Rs. 10 Lac.
He will now get difference of what actually has been paid and what is actually payable.
Difference amount will be within the ceiling amount (i.e. acual paid + difference will be within Rs. 10 Lac)
Will difference amount will be subject to Income Tax?
A V Vishal
(Expert) 09 August 2010
Yes, the amount received now will be taxable as per the old act since the amendment is prospective and not retrospective
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