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TDS on gratuity


I was retired 6 years ago when the gratuity ceiling for tax purpose was Rs10 Lacs and as such TDS was deducted on amount exceeding Rs10 lacs.Now the limit is Rs20 Lacs.Having won case in the court my employer has now promoted me to higher grade retrospectively and pais another gratuity amount of Rs168000 due to promotion.
As this amount is received in current FY,when gratuity is free from tax upto Rs20 Lacs, w,hether i am liable to pay income tax on this additional amount.
Similarily some amount towards leave encashment is also received due to refixation of salary in 2016,which received in current fiscal.Whether It is applicable on this amount also.

By: MANMOHAN CHHABRA



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30 Apr

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