Hello Sir, I have received gratuity of ra. 4.15 lakhs in FY 2022-23 upon resigning from my previous organisation, where I served for 16 years. My previous organisation had deducted TDS from the gratuity, but I beleive gratuity is tax-exempt till Rs. 20 Lakhs. Please let me know whether Iam eligible for tax exemption or not.
Ans: Hello Raghavendra,
You're absolutely right. As per the recent amendment by the Centre, the maximum limit of tax-exempt gratuity has been increased to Rs 20 lakh from the previous ceiling of Rs 10 lakh. This means that if you've received a gratuity of Rs. 4.15 lakhs in FY 2022-23, it should be completely tax-exempt.
If your previous organisation has deducted TDS on this amount, I would recommend you to consult with them or a tax consultant to rectify this. You may be able to claim a refund for the TDS deducted when you file your income tax return.
Please note that tax laws can be complex and it's always a good idea to consult with a tax professional to understand your specific situation better.
I hope this helps!
