Tax on gratuity money: Difference of taxation system for govt vs private employees - Explained
Under the Gratuity Act, employees who have worked for at least five full years with the current employer are eligible to avail this benefit. Otherwise, those who pass away or rendered disabled due to accident or illness, they must be paid gratuity.
In March 2019, the labour ministry stated that the income tax exemption limit on gratuity has been doubled to Rs 20 lakh from existing Rs 10 lakh. Representational Image, source: PTI