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Income tax exemption limit on gratuity doubled to Rs 20 lakh: Labour Min

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Only the Bank employees and PSU employees are excluded from Gratuity amount of 20 lacs from 01/01/2016. Always this ''Sautela'' treatment. Why? Don''t we work sincerely? We never extra under the table money like others. So why this disparity Jaitley Sir?

Ramesh

THE VERY MEANING OF GRATUITY IS YOUR GRATEFUL SERVICES CONSIDERATION. YOUR LOYALTY AND THE FAITHFULNESS. PSU STAFF GETS CORRUPTION BUT A NORMAL MAN GETS LIFE''S ACHIEVEMENT. HE HAS PAID THE TAXES AT SOURCE DURING THE WORKING LIFE SO ANY AMOUNT MUST BE TAX FREE. THE F M IS JOKING.

Concerned Citizen (India)

Since the notification is applicable from 29th March 2018, does that mean that it is applicable for FY 2017-18 because it was before the end of that FY? If yes, then does the limit of 20 lacs apply to a person retiring in Dec 2017??

True Indian (India)

This is huge bonanza for all salaried people in PSUs and Private Companies. Well done. Keep it up.

Ashwini Aravind (Bangalore)

Pls also make provision in the law to accumulate gratuity benefit like pf without any insistance that one should serve the company for 5years. Presently employees donot get gratuity if they dont serve company for 5years. This gratuity is part of ctc for most of the employees. Why should company gain at the cost of employees service when employees donot complete 5years? Anyway salaried class are the major contributor of direct tax to the exchequer.

True Indian (India) replies to Ashwini Aravind

I will explain You, why it will never be reduced. Gratuity is provided by Employer. If a Private Company is employer, after five years of employment, they provide Gratuity. But in India, large majority of those employers are petty contractors. They pick up contracts from reputed Companies. To get contract, they give much lower rate. With such lower rate, it is not possible at any time even after ten years to give gratuity. What they do, they first bid contract with bare minimum lower rate and Companies just extend those contracts years after years.But those in such field, know it very well, in order to evade paying gratuity, they give miss to their fifth year bidding. They simply keep them out for one year. Then again they give their bidding. Thus, none continues their service continuously five years under same bidder. Second bidder is not different from first bidder but they are registered under different name and address.So, they never pay any gratuity even after ten years or twenty years of service. If it is reduced to say, two years, then they will bid alternately for every two years to evade gratuity. In fact, since, their bidding rate is not high, hence forget them to provide gratuity. 90% of India''s such employees are contractual laborers. There are very less number of Companies which employ labours directly in Company''s name and Company is the employer unless Company decides to employ permanent employees.

RR (Bangalore)

The Government should amend the Income tax calculation in such a way that any amount above Rs.20 Lacs only to get taxed. The current formula of Last basicX15/26 will not give the intended benefit of Rs. 20 Lacs exemption. Please correct the tax rule to what he is saying.

True Indian (India) replies to RR

In India, 60% Tax returnees have nil Tax liability and another 35% are below 20 lacs income bracket. That means 95% of salaried people will be outside of Tax purview and You expect, 5% Tax payer will bear all bills. In which world, You reside, Sir?

PS

Another election sop!!!. Take the benefit which is your genuine right and vote according to your values!!!

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