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GRATUITY - SALARIES - TAX - PCC

VUELVE (CA- Student) (351 Points)

08 November 2010

I have a small query :

While calculating Gratuity in "Income from Salaries" head the Max. Limit of Gratuity before was Rs.350,000/- and now it is Rs.10,00,000/- so please let me know which one is applicable to this Nov 2010 Tax Paper ?

Whether we have to consider Rs.350,000/- or Rs.10,00,000/- for the purpose of Nov 2010 and will it be Rs.10,00,000/- for May 2011 Exams ?

Thank You !

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16 Replies

kunal mangal (Chartered Accountant) (160 Points)
Replied 08 November 2010

Dear vuelve,

Amendments which comes into force before 6 months from the date of exam are applicable.Thus, the limit of rs 350000 is applicable and rs 10 lakh limit will be applicable for may 11 exam.

Regards,

Kunal Mangal

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Faiz Ahmed ( Article Trainee) (1731 Points)
Replied 09 November 2010

I agree with Kunal's reply. Also see this link-- https://www.caclubindia.com/forum/pls-help-98955.asp

1 Like

swapnil (CA Final) (598 Points)
Replied 09 November 2010

when i referred tax amended supplimentary, there is no any guideline 4 gratuity,

and faiz is right, because in the maonth of w.e.f may 2010 gratuity limits is extended 2 Rs.10,00,000, but becauses of 6 month ka criteria, so just short of 1 month, so that why this exteded limits is not applicable 2 nov 2010 attempt.

keep sharing,

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 09 November 2010

As answered by others, Rs.350,000 will be applicable for Nov 2010.

Azim Khan ACA,CS,CMA*,LLB* (Proprietor) (1312 Points)
Replied 09 November 2010

as per my knowledge the notification enhancing the maximum limits of Gratuty was issued on 24th May, 2010...

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riyaz shaikh (student) (77 Points)
Replied 09 November 2010

KUNAL MANGAL IS CORRECT

CA Hemant Jain (Accounts/Internal Audit Officer) (90 Points)
Replied 09 November 2010

350000 As reffered in RTP back side NOV2010.

CA Hemant Jain (Accounts/Internal Audit Officer) (90 Points)
Replied 09 November 2010

Applicability of relevant Amendments/Circulars/Notifications/Regulations etc. relating to

Business and Corporate Laws for November 2010, Examination:

Subject Matter PCC/IPCC –

Business Laws,

Ethics and

Communication

CA Final (New

Course) –

Corporate and

Allied Laws

CA Final (Old

Course) –

Corporate Laws

and Secretarial

Practice

Employees Deposit Linked

Insurance (Amendment)

Scheme, 2010

Not Applicable – –

The Payment of Gratuity

(Amendment) Act, 2010

Not Applicable – –

Companies Bill, 2009 Not Applicable Not applicable Not applicable

Company Law Settlement

Scheme, 2010

– Not Applicable Not Applicable

Easy Exit Scheme, 2010 – Not Applicable Not Applicable

Provisions relating to

Revival and Rehabilitation

of Sick -Industrial

Companies

– Not applicable

[Students have

been advised to

study only

definitions as

covered under

Paragraph 8.0 of

chapter 8 of the

study material]

Not prescribed

in syllabus – Not

applicable

Companies (Second

Amendment) Act, 2002

[relating to Winding Up]

– Not applicable

[Students have

been advised to

study only the

general provisions

of winding up as

Not applicable

[Students have

been advised to

study only the

general

provisions of

covered under

Paragraph 9.4 of

chapter 9 of the

study material]

winding up as

covered under

Paragraph 4.0 of

chapter 4 of the

study material]

SEBI (Issue of Capital and

Disclosure Requirements)

Regulations, 2009

– Applicable

(Amendments upto

April 2010)

Applicable

(Amendments

upto April 2010)

SEBI (Disclosure and

Investor Protection)

Guidelines, 2000 (now

rescinded)

– Not applicable

from May 2010

examination

Not applicable

from May 2010

examination

FEMA, 1999

Circular No. 50 of A.P. (DIR

Series)/Circular No. 7 of

A.P. (FL Series) relating to

release of Foreign

Exchange for Visits Abroad

as covered under FEMA

1999- Currency Component

(Increased to $3000 from

$2000)

– Not applicable Not applicable

Competition (Amendment)

Act, 2009

– Applicable (Since

from May 2010

examination)

Applicable (Since

from May 2010

examination)

Prevention of Money -

Laundering (Amendment)

Act, 2009

– Applicable (Since

from May 2010

examination)

Not prescribed

in syllabus – Not

applicable

(Guest)

Originally posted by : kunal mangal
	Dear vuelve, Amendments which comes into force before 6 months from the date of exam are applicable.Thus, the limit of rs 350000 is applicable and rs 10 lakh limit will be applicable for may 11 exam. Regards, Kunal Mangal

Correct............

(Guest)

limit of Rs. 350000 is applicable ...

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Lavin Mathew (Chartered Accountant) (50 Points)
Replied 09 November 2010

hey....

u take Rs.350000 for nov Exam bcs the 6 months applicability period ........and give the new ammendment by way of note that will be better.........

1 Like

danish dabir (mumbai) (218 Points)
Replied 09 November 2010

limit of Rs. 350000 is applicable for nov 2010...and limit of RS.1000000 WILL be applicable for may 2010

prasad8410 (Internal Audit Assistant) (93 Points)
Replied 09 November 2010

350000...for nov2010 examination.,

Nikhil Kothari (CEO at Sequinox Business Advisories) (4671 Points)
Replied 10 November 2010

Originally posted by : Lavin Mathew
	hey.... u take Rs.350000 for nov Exam bcs the 6 months applicability period ........and give the new ammendment by way of note that will be better.........