After serving for 28 years and 7 months in M Steels Ltd., Nitin retired on 30th September, 2021. He is covered by the Payment of Gratuity Act, 1972. The company has paid him a gratuity of ₹14,21,500. At the time of retir
CS Executive · Tax Laws · PYQS · December 2022
After serving for 28 years and 7 months in M Steels Ltd., Nitin retired on 30th September, 2021. He is covered by the Payment of Gratuity Act, 1972. The company has paid him a gratuity of ₹14,21,500. At the time of retirement, he was getting basic salary ₹37,800, dearness allowance ₹3,800 and house rent allowance ₹5,200 per month. However his average salary for last 10 months is ₹36,400. Determine the amount of gratuity exempt under section 10(10) of Income Tax Act, 1961.
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Income Tax Act, 1961
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