please, anyone send me about provision for gratuity and its calculation
vidya p nambiar (student) (45 Points)
26 July 2008please, anyone send me about provision for gratuity and its calculation
Prem Kumar
(Articled student--Final)
(375 Points)
Replied 26 July 2008
gratuity is covered under section 10(10) of the act
TAXATION OF GRATUITY- received after retirement
It is fully exempt from tax u/s10(10)(i) if received by a central/state govt employee( BUT not statuory corpn employees)
for an "PAYMENT OF GRATUITY ACT 1972" least of the following 3 is exempt
a. 15 days last drawn salary- for every year of service(any fraction above 6 months is taken as one year)
b. amount "fixed" by central govt ie 350,000
c.actual gratuity recieved
For any other emloyee
exempt u/s10(10)(iii)
for above point a (1/2 month's) salary for every FULL year of service(fraction ignore)
Manish Karwa
(Head Finance & Accounts)
(201 Points)
Replied 04 August 2008
For gratuity valuation you have to take the service of actuarial
CA Nikhil Mittal
(Manager (Audit))
(77 Points)
Replied 04 August 2008
Originally posted by :Prem Kumar | ||
" | gratuity is covered under section 10(10) of the act TAXATION OF GRATUITY- received after retirement It is fully exempt from tax u/s10(10)(i) if received by a central/state govt employee( BUT not statuory corpn employees) for an "PAYMENT OF GRATUITY ACT 1972" least of the following 3 is exempt a. 15 days last drawn salary- for every year of service(any fraction above 6 months is taken as one year) b. amount "fixed" by central govt ie 350,000 c.actual gratuity recieved For any other emloyee exempt u/s10(10)(iii) for above point a (1/2 month's) salary for every FULL year of service(fraction ignore) |
" |
SANJEEV CHOUDHARY
(STUDENT)
(21 Points)
Replied 31 May 2012
GRATUITY PRVISIONS AS PER AS-15 EMPLOYEE BENEFITS IS CALCULATED BY ACTURIAL. THERE ARE DIFFERENT PROVISIONS FOR GOVT & NON GOVT EMPLOYEE