24 June 2010
Calculation of Gratuity for A.Y. 2011-12
For Govt employees it is fully exempted
For other than Govt employees there are 2 categories:
1. Covered by Gratuity Act, 1972
Exemption u/s 10(10) will be least of following:
i Rs. 10,00,000 ii 15/26*last salary drawn*no of year of services in excess of 6 months iii Gratuity received Salary means basic + DA
2. Not Covered by Gratuity Act
i Rs. 10,00,000 ii 15/30*Avg salary drawn for last 10 months*completed no of years of services iii Gratuity received Salary means basic + DA (if part of retirement benefit)
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