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Can Gratuity be taxed?

In: Taxes and Tax Preparation [Edit categories]

Answer:

Yes. Gratuityup to a maximum of Rs.3.5 lacs is tax free. Any amount above this is taxable However if an employee is eligible for a Gratuity amount of Rs. 2.9 lacs as per the Gratuity formula, but the employer decides to pay him/her Rs.3.25 lacs the amount above the actual eligible amount i.e., the amount above Rs.2.9 lacs is taxable.

First answer by ID2045932044. Last edit by ID2045932044. Question popularity: 1 [recommend question].

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