New Delhi, Mar 5 : Continuing with its sops for the general public ahead of the 2019 General elections, the Government on Tuesday raised the bar of income tax exemption for gratuity to Rs 20 lakh from Rs 10 lakh.
The government enhanced the limit of income tax exemption for gratuity under Section 10(10)(iii) of the Income Tax Act, Union Finance Minister Arun Jaitley said here. The step would benefit all public sector undertaking employees and other employees, who are not covered under the Payment of Gratuity Act.
“Income Tax Exemption for Gratuity under Section 10(10)(iii) of the Income Tax Act has been enhanced to Rs. 20 lakh. Would benefit all PSU employees and other employees not covered by Payment of Gratuity Act,” Mr Jaitley tweeted.
Recently, the Government has approved an amendment to increase the maximum limit of gratuity, to be exempted from tax to Rs 20 lakh from the existing ceiling of Rs 10 lakh. (UNI)