Section 10(10) → Section 12
Exemption - Gratuity
Quick Answer
Section 10(10) of the Income Tax Act, 1961 (Exemption - Gratuity) corresponds to Section 12 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 10(10)
Under the Income Tax Act, 1961, Section 10(10) governs exemption - gratuity. Exemption for death-cum-retirement gratuity, subject to specified limits (currently Rs. 20 Lakhs for non-government employees).
The new code maps this to Section 12: the provision is retained and renumbered as Section 12 of the Income-tax Act, 2025, applying from 1st April 2026. Retained under the consolidated exemptions chapter.
On the ground, changes to Section 10(10) carry a High impact. Essential retirement benefit for salaried employees.
Sec 10(10)
Provision Summary
Exemption for death-cum-retirement gratuity, subject to specified limits (currently Rs. 20 Lakhs for non-government employees).
Sec 12
Provision Summary
Retained under the consolidated exemptions chapter.
Key Changes & Highlights
- Limits auto-adjust based on periodic government notifications without needing a full Act amendment.
Related Sections
Frequently Asked Questions
What does Section 10(10) of the Income Tax Act 1961 deal with?
Section 10(10) of the Income Tax Act, 1961 covers exemption - gratuity. Exemption for death-cum-retirement gratuity, subject to specified limits (currently Rs. 20 Lakhs for non-government employees).
Where does Section 10(10) of the ITA 1961 go under the Income-tax Act, 2025?
Section 10(10) of the Income Tax Act, 1961 maps to Section 12 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained under the consolidated exemptions chapter.
Why does the change to Section 10(10) matter for taxpayers?
The transition impact for Section 10(10) is rated High. Essential retirement benefit for salaried employees.
What are the key changes to Section 10(10) under the Income-tax Act, 2025?
Limits auto-adjust based on periodic government notifications without needing a full Act amendment. These points are specific to Section 10(10) (Exemption - Gratuity).
Disclaimer: This mapping of Section 10(10) (Exemption - Gratuity) to Section 12 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 10(10) is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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