Gratuity received by an employee on retirement is:
AFully taxable as employment income
BExempt from personal income taxCORRECT
CTaxable at half the applicable rate
DTaxable only if it exceeds ₦1,000,000
ICANTaxationPersonal Income Tax: Employment Income2025
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Why the answer is B, and why the others tempt you.
Retirement gratuities are listed among exempt incomes under PITA. Pension income received under an approved scheme is likewise exempt.
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