Gratuity
This query is : Resolved
23 March 2011
Hi
Could you please explain me the treatment of Gratuity received during the year by employee for Tax computation purpose.
Could you please explain me the treatment of Gratuity received during the year by employee for Tax computation purpose.
23 March 2011
Gratuity received upto Rs. 1000000 is exempt
23 March 2011
Gratuity recd by Govt employees - fully exempt
For others -
If employee is covered by Payment of Gratuity Act, least of the following is exempt -
1. 10 lakhs,
2. actual gratuity recd, or
3. 15/26*last drawn salary*completed yrs of service
salary here means basic + dearness allowance
completed yrs of service includes part of the yr in excess of 6 months
If employee is NOT covered by Payment of Gratuity Act, least of the following is exempt -
1. 10 lakhs,
2. actual gratuity recd, or
3. 1/2*average salary*completed yrs of service
average salary means average of last ten months' salary immediately before month of retirement
salary here means basic + dearness allowance in terms of employment + commission expressed as a % of turnover achieved by the employee
completed yrs of service DOES NOT include part of the yr in excess of 6 months
For others -
If employee is covered by Payment of Gratuity Act, least of the following is exempt -
1. 10 lakhs,
2. actual gratuity recd, or
3. 15/26*last drawn salary*completed yrs of service
salary here means basic + dearness allowance
completed yrs of service includes part of the yr in excess of 6 months
If employee is NOT covered by Payment of Gratuity Act, least of the following is exempt -
1. 10 lakhs,
2. actual gratuity recd, or
3. 1/2*average salary*completed yrs of service
average salary means average of last ten months' salary immediately before month of retirement
salary here means basic + dearness allowance in terms of employment + commission expressed as a % of turnover achieved by the employee
completed yrs of service DOES NOT include part of the yr in excess of 6 months
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Confusion around Form 26QB fields
- Tds on building rent monthly
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- TDS under section and rate of TDS
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
- BUYING PROPERTY COULD NOT FILE 26QB
Trending Online Classes
CAclubindia
