Celebrate Freedom and save 20% OFF on CAclubindia Pro Subscription! Use code: FREEDOM20

Gratuity calculaton

Jitendra (MBA) (27 Points)

02 June 2018

Dear Sir(s)

Please help me to calculate gratuity amount, below are the details.

DOJ	01-Jul-07
DOL	16-Jan-18
Year service
Basic Salary	45000.00
Provision

Reply
Follow
Share

6 Replies

Rahul Prajapati (Student) (2282 Points)
Replied 02 June 2018

Whether employee is a government or non government employee? covered under gratuity act or not ?

Upgrade to CAclubindia Pro. Subscribe Now!

Jitendra (MBA) (27 Points)
Replied 02 June 2018

Non government employee and covered under gratuity act.

Rahul Prajapati (Student) (2282 Points)
Replied 02 June 2018

For non-government employees covered under the Gratuity Act, the income tax exemption on any gratuity received is least of the following:

Maximum amount specified by the government which is currently Rs. 10 lakh
Last drawn salary X 15/26 X years of service
Actual gratuity received

Your Question, Exempt Lower of Following :

1. Rs. 10 Lakh

2. (10 Years 7 Month) 45000*15/26*11 = 2,85,577

3. Actual

Jitendra (MBA) (27 Points)
Replied 02 June 2018

Thanks for replying with the precious advice. Could you just tell me if employee would have completed 10 years 6 months only. Could we consider 11 years.

Jitendra (MBA) (27 Points)
Replied 02 June 2018

Thanks for replying with the precious advice. Could you just tell me if employee would have completed 10 years 6 months only. Could we consider 11 years.

Upgrade to CAclubindia Pro. Subscribe Now!

Rahul Prajapati (Student) (2282 Points)
Replied 02 June 2018

Originally posted by : Jitendra
	Thanks for replying with the precious advice. Could you just tell me if employee would have completed 10 years 6 months only. Could we consider 11 years.