- Yes there is no tax on the gratuity received by the govt. employees. TDS was deducted on the pension amount.
- I may assist you in filing of ITR.
Tax applicability on gratuity payment
I had resigned from a govt PSU in May 2016 and was paid rs 10 lakhs as gratuity without any TDS. As our company had increased the gratuity from 10 lakhs to 20 lakhs on retrospective effect i was paid another 10 lakhs during nov 2018. But this time they debited applicable TDS. I understand that no INCOME TAX is applicable on gratuity paid to govt psu employees. Please confirm if i can seek refund of this tds while filing tax return
Asked 5 years ago in Income Tax
There is pension for psu employees as cpf ( contributory provident fund )available. And all these payments were made in 2016=17 fy. During FY 18-19 only gratuity arrers were paid. Hence can i assume that the tax deducted was wrongly done and i could claim refund
Asked 5 years ago
Dear Sir,
Hope you are doing well !!
Yes, your understanding is correct.
As per current law, gratuity received by a government employee is fully exempt from tax.
Please send the details at aroravivek1982@gmail
Please take a phone consultation to discuss in length.
Gratuity is fully exempt for Government employees.
You must file return and claim exemption.
The TDS would be on pension as there is no section for TDS on gratuity.
If you need any assistance feel free to contact.
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Thank you.
Hello,
Yes, Gratuity paid to government employees is fully exempt from tax.
You can seek a refund of TDS deducted.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Hi,
The gratuity received by government employees are fully exempt from tax.
TDS must have been deducted on something else. However, you can claim it back while filing return.
We can help you in furnishing your return
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