YOUR QUERY: Is GPF And Death Gratuity Taxable and how much?
REPLY:1. The GPF (General Provident Fund) amount received is fully exempt - Section 10 (11) of the Income tax Act 1961.
2) The Gratuity received is -
- fully exempt in the ases of Central/State Govt Employees;
- partly exempt, to the extent o, the amount calculated under S.4(2) & 4 (3) of the Payment of Gratuity Act 1972, if received under that Act;
- in othercases - exempt to the extent of one half month's salary for every completed year of service, limited to Rs 10 lakhs, as provided in Section 10(10)(iii)of the Income tax Act 1961.