Question

    An employee receives gratuity of ₹12 lakhs on

    retirement. What is the maximum tax-exempt amount under the Income Tax Act?
    A ₹10 lakhs Correct Answer Incorrect Answer
    B ₹12 lakhs Correct Answer Incorrect Answer
    C ₹20 lakhs Correct Answer Incorrect Answer
    D ₹5 lakhs Correct Answer Incorrect Answer

    Solution

    As per current rules, ₹20 lakhs is exempt for gratuity received by non-government employees under Payment of Gratuity Act.

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