Is Gratuity Taxable For Government Employees

QUESTION-

FROM- Sudheer Kumar

Hi sir ,
 My father retired from his services recently, and we got some amount at the time of retirement . we deposited that money in the bank. We have to pay income tax for that...?

 Additional Information:
My father is government employee. and the amount received is gratuity.

ANSWER-

Hi Sudheer,

Thanks for posting the query, get your answer below:

1. First of all read the taxability of Gratuity from the below mentioned link:

http://www.ngoandtaxconsultant.in/2014/06/gratuity-and-its-taxation.html

2. Since you have written that your father is a Government employee, the entire amount received is exempt from Income Tax and you will not have to pay any tax on the amount received.

Hope this helps you, feel free to contact further for any queries.