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Rs 20 lakh gratuity limit to benefit PSU, private sector employees: Jaitley

The government in Budget 2019-20 also announced hiking of tax free gratuity to Rs 20 lakh for employees having service of more than five years

Press Trust of India  |  New Delhi 

Arun Jaitley, finance Minister
Finance Minster Arun Jaitley

said Tuesday the decision to double tax-free limit to Rs 20 lakh will benefit public and

The government in Budget 2019-20 also announced hiking of tax free to Rs 20 lakh for employees having service of more than five years.

"Income Tax Exemption for 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," said in a tweet.

Parliament last year passed Payment of Gratuity (Amendment) Bill, 2018, enabling the government to raise the limit of to Rs 20 lakh and to fix the period of maternity leave qualifying as continuous service period through an executive order.

First Published: Tue, March 05 2019. 15:55 IST
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