Tax-free Rs. 20L gratuity to be reality soon
Payment of Gratuity Amendment Bill 2017 is likely to be passed in the forthcoming Budget session, which will make formal sector workers eligible for tax free Rs 20 lakh gratuity.
At present formal sector workers with five or more years of service are eligible for Rs 10 lakh tax free gratuity after leaving job or at time of superannuation.
“The Payment of Gratuity (Amendment) Bill, 2017 will be passed in the Budget session of Parliament, expected to begin by the end of this month,” a source said.
The source further said, “The government wants to provide tax free gratuity of Rs 20 lakh to organised sector workers at par with Central government”.