Income tax return (ITR) filing: These employees can pay less tax now
Income tax return (ITR) filing: Employees from the private sector as well as of PSUs have received a big gift of money from the PM Narendra Modi led NDA government. Tax free gratuity limit has been hiked. In fact it has been doubled.
On Tuesday, FM Arun Jaitley said that doubling of tax-free gratuity limit to Rs 20 lakh from Rs 10 lakh will be beneficial for public and private sector employees. The government in Budget 2019-20 also announced hiking of tax free gratuity to Rs 20 lakh for employees having service of more than five years. Image source: PTI
Not just that, a 100 per cent raise in 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 have been added to the gift, which comes just ahead of general elections. Image source: Pixabay
"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,'' FM Jaitley had tweeted today. Image source: Reuters
Parliament last year passed Payment of Gratuity (Amendment) Bill, 2018, enabling the government to change the existing Rs 10 lakh tax free gratuity limit to Rs 20 lakh. The government had amended the section 10 (10) iii of the Income Tax Act in parliament last year. Image source: Reuters
Earlier, the government delighted the middle class by raising the income tax reabte in its interim budget 2019. Interim Finance Minister Piyush Goyal announced that taxable income up to Rs 5 lakh will get full tax rebate under section 87A of the Income Tax Act. Image source: Pixabay