1
Question
Gratuity received by a government employee is ______.
Gratuity received by a government employee is ______.
Open in App
Solution
The correct option is A Fully exempted
Gratuity is a sum of money paid by an employer to an employee for services rendered in the company. However, gratuity is paid only to employees who complete 5 or more years with the company. It can be understood as a form of tip paid by employer to the employee for services offered in the company. Any employee under the state government, central government or local authority receives gratuity amount than the amount is fully exempt from Income Tax.
Gratuity is a sum of money paid by an employer to an employee for services rendered in the company. However, gratuity is paid only to employees who complete 5 or more years with the company. It can be understood as a form of tip paid by employer to the employee for services offered in the company. Any employee under the state government, central government or local authority receives gratuity amount than the amount is fully exempt from Income Tax.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
