Doubling tax-free gratuity limit to Rs 20 lakh to benefit PSU, pvt sector employees: Arun Jaitley

Doubling tax-free gratuity limit to Rs 20 lakh to benefit PSU, pvt sector employees: Arun Jaitley

PTIUpdated: Wednesday, May 29, 2019, 01:35 AM IST
article-image
(PTI Photo/Atul Yadav) |

New Delhi: Finance Minister Arun Jaitley said Tuesday the decision to double tax-free gratuity limit to Rs 20 lakh will benefit public and private sector employees. The government in Budget 2019-20 also announced hiking of tax free gratuity to Rs 20 lakh for employees not covered under the Gratuity Act having service of more than five years.

“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,” Finance Minister Arun Jaitley said in a tweet.

Parliament last year passed Payment of Gratuity (Amendment) Bill, 2018, enabling the government to raise the limit of tax-free gratuity to Rs 20 lakh and to fix the period of maternity leave qualifying as continuous service period through an executive order.

RECENT STORIES

Banks To Stay Open On Sunday: Upon Government Request, RBI Asks Lenders To Function On March 31

Banks To Stay Open On Sunday: Upon Government Request, RBI Asks Lenders  To Function On March 31

Stock Market News: Indian Indices To Remain Shut Today On Account Of Good Friday

Stock Market News: Indian Indices To Remain Shut Today On Account Of Good Friday

How Does SIP Help You Create Wealth in the Long Term?

How Does SIP Help You Create Wealth in the Long Term?

The Disruptive Potential of AI in Stock Market Trading: Rohan Menon's Perspective

The Disruptive Potential of AI in Stock Market Trading: Rohan Menon's Perspective

Analysis: Anonymous Electoral Bonds Reined In — But What About Anonymous Cash Donations?

Analysis: Anonymous Electoral Bonds Reined In — But What About Anonymous Cash Donations?