Income tax enquiry

This query is : Resolved

Manish Sharma (Querist)
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31 March 2013 A individual income after cutting T.D.S is Rs.3450000 and he also got Gratuity of Rs.1000000 in financial Year 11-12,So what is
his Income?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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04 August 2013 Gratuity is exempted as per the limit u/s. 10(10)

Covered under gratuity act,1972

Least is of below exempted

Actual receipt
Maximum limit 10,00,000 (fixed)
15/26 × salary last drawn ×rounded years of services

Least is below exempted

Actual receipt
Maximum limit 10,00,000 (reduced)
15/30× Average salary × completed years of services

Salary meaning Basic pay + D.A.

Average salary meaning

=(Basic pay + D.A.(if)+ % commission,of 10 months immediately preceding from the month of retirement)/10