Exemption from Tax for Gratuity Payments Enhanced from Rs. 3.5 Lakh to Rs. 10 Lakh

               The Central Board of Direct Taxes has approved notification of ten lakh rupees as the maximum amount of gratuity entitled to exemption under sub-clause (iii) of clause (10) of section 10 of the Income Tax Act 1961.

             The notification will be applicable to employees who retire, or become incapacitated before retirement, or expire, or whose services are terminated, on or after the 24th May 2010.

Travelling Allowance Rules(TA/DA) – Implementation of the Sixth Central Pay Commission

             An OFFICE MEMORANDUM on reimbursement of TA/DA has been issued by Ministry Of Finance (Department of Expenditure) on 11-6 2010.


           The entitlement with regard to hotel accomadation,taxi charges,and reimbursement of food bills in respect of government officials on tour were prescribed in the Finance Ministry’s OM of even number Dated 23.9.2008.

          The matter regarding availability of suitable hotel accommodation etc. within the rates approved vide the O.M. to Government officials while on tour has been taken up by the Ministry of Tourism with various State Governments and also with ITDC. Some of the State Tourism Departments and the ITDC have responded to the initiative. The rates offered by various State Tourism Departments and ITDC to the Government officials while on tour can be accessed on the website of respective State Tourism Departments. The Ministry of Tourism is also being requested to collate the information centrally and post it on their website for convenience of government officials.

           Government Officials may, if they so desire, avail of their rates offered by State Tourism Departments and ITDC while on official tour depending on their entitlement as per OM dt. 23.9.2008

DOWNLOAD THE OFFICE MEMORANDUM DATED 11-6-2010
DOWNLOAD THE OFFICE MEMORANDUM DATED 08-6-2010

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