24 June 2015
As per Sec. 10(10B)The least of the following is exempt: (a) Amount actually received; (b) 15 days’ average pay × Length of service (period of > 6 months to be taken as completed year) (c) Rs.5,00,000 ‘Salary’ means basic salary, D.A. if considered for retirement benefits & commission if paid at a fixed % of sales. Average salary to be calculated on the basis of last three completed calendar months. Find the exempt amount and rest will be taxable.
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