Arun Jaitely said on Tuesday that decision to increase the tax free gratuity limit to 20 Lakh rupees would benefit the public and private sector employees.
Explained that in the budget 2019-20, the government had announced tax free gratuity to the employees who have served for more than five years, to the tune of 20 lakh rupees.
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.— Arun Jaitley (@arunjaitley) March 5, 2019
The Parliament passed the Payment of Gratuity Bill 2018 last year, which gave an opportunity to the government to increase the tax-free gratuity limit to 20 lakh rupees.