Mohan, retried from Y & Company Ltd. on 31-08-2018 after rendering services for 31 years and 7 months. He was paid ₹11 lakhs as gratuity under the Payment of Gratuity Act, 1972. His last drawn salary was ₹52,000. How

CS Executive · Tax Laws and Practice · PYQS · June 2019
Mohan, retried from Y & Company Ltd. on 31-08-2018 after rendering services for 31 years and 7 months. He was paid ₹11 lakhs as gratuity under the Payment of Gratuity Act, 1972. His last drawn salary was ₹52,000. How much of the amount of gratuity would be exempt?
(A) ₹10,00,000
(B) ₹20,00,000
(C) ₹9,30,000
(D) ₹9,60,000

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D). Official source note: Mohan, retried from Y & Company Ltd. on 31-08-2018 after rendering services for 31 years and 7 months. He was paid ₹ 11 lakhs as gratuity under the Payment of Gratuity Act, 1972. His last drawn salary was ₹ 52,000. How much of the amount of gratuity would be exempt ? (A) ₹ 10,00,000 (B) ₹ 20,00,000 (C) ₹ 9,30,000 (D) ₹ 9,60,000

Topics: Income Tax Act, 1961

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