Gratutity

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Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2013 Hello Sir,
How to calculate gratutiy deduction if a person is getting prefessional fees u/s 194J

@VaibhavJ

@VaibhavJ (Expert)
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25 February 2013 Hi,

Gratuity is paid to only employee on payroll & not consultant.

Can you give more details on receipt of gratuity.

Thanks!!

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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25 February 2013 agree with VaibhavJ
when there is professional fee then there will not be any gratuity
sometime company do that when an employee retires they hire him as consultant. I think your case is like this
but in this gratuity exemption will not be calculated on days when he is working as consultant

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Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2013 actually it is my sisters frnd's dad who got gratutiy, now she told me that two yrs before her father was employed with salary, and from 2 yrs onwards he is on contract basis.

@VaibhavJ

@VaibhavJ (Expert)
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25 February 2013 Hi

It seems that he has received gratuity for the tenure for which he was on salary, so gratuity upto Rs. 10L is exempt from IT.

Thanks!!