I have a query regarding Tax deduction from salary Is it possible that gratuity being tax exempt be deducted from the very first month of joining a company
For eg Mr A joins a company XYZ ltd with a gross salary of Rs 12 lacs PA.His basic gross salary is 40% of his gross salary which is Rs 480000 pe and gratuity is given to him at the rate of Rs 276923.08 PA. This amount of gratuity is part of his CTC of Rs 12 lacs but is exempt from IT as the limit is Rs 10L.
If it is OK to pay then should it be paid as a lump sum amount or every month as a head in the salary.
Can the organisation do this for a given employee to reduce his tax burden.
CAclubindia
