itika mehra (articled assistant) (202 Points)
03 March 2010Hey plz help me out in my small query of income tax
(a)Calculate taxable gratuity,vn on retirement aftr 24 yrs of continus service on 5-8-2009 R rcvd retirement gratuty of 360000 based on 1 mnth salary fr each yr.his salary in calendar yr 2004 was 10000p.m.since when it has incresead @ Rs. 1000 p.m. each yr. his salary is due on last day of evry mnth,
the curct answr fr dis is 183600 bt im nt getting dis can anyone hlp me to gt dis?
Amir
(Learner)
(4016 Points)
Replied 03 March 2010
Dear Itika,
Least of the following will be exempt -
1) Gratuity Received = Rs. 3,60,000
2) Limit as prescribed =Rs. 3,50,000
3) Amount as computed = 1/2 month Average salary of past 10 months x No. of. years of service
= 1/2 {(15000*7 + 14000*3)/10} x 24
= 1,76,400
Therefore Taxable Gratuity is Rs. 3.60 Lacs - Rs. 1,76,400 = Rs. 1,83,600
Note : -Salary = 15000/month in Calender year 2009 i:e January'09 to July'09 = 7months
+ 14,000/month in Calender year 2008 i:e October 2008 to December 2008 = 3 months
Vidya
(Service with a reputed CA firm)
(75 Points)
Replied 03 March 2010
rajesh agrawal
(ca)
(26 Points)
Replied 08 January 2011
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the given answer is correct if employee in question is not covered under payment of gratuity act.
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