Query old salary 2006 to 2008 25 month 3.75 lacs
Leave encashment 13800 rs
Bonus 72000 rs
Court expenses 72000 rs
Gratutity 2.48 lacs
Interest 1.75 lacs
No other income presumed
Taxability in current year ay 15 16
Pls.. reply urgent
9 Replies
Vinay somani (CA, CS)
(Assistant Manager-Accounts)
(549 Points)
Replied 18 May 2016
for calculation of gratuity require some details.
1. whether Assess is Govt. employee..??
2. Last Drawn Monthly Salary
3. Whether Court Exp. is part of salary or rembureshement of expenses..??
4. Whether 3.75 is fully Basic salary or any bifrerciation is ther. Like DA, HRA. Conveyance Allowance.
Saurav
(CA)
(211 Points)
Replied 18 May 2016
NOT A GOVT. EMPLOYEE
LAST SALARY 15000
NOT A PART OF SALARY
BASIC SALARY
Vinay somani (CA, CS)
(Assistant Manager-Accounts)
(549 Points)
Replied 18 May 2016
only 405692/- { (248000-17308) + 175000} is taxable.
Leave encashment is fully exempt.
Bonus and salary is already taxable in 2006-2008 on accural basis so not taxable in 15-16.
Court exp. are not part of salary it i just rembureshment of exp. so not taxable.
Only Interest of 175000/- and Gratuity of Rs. 230692/- ( 248000-17308) is taxable.
If any one have different view please update.
Vinay somani (CA, CS)
(Assistant Manager-Accounts)
(549 Points)
Replied 18 May 2016
altough it is recived in current year. but as per income tax salary is taxable on accrual of receipt which ever is earlier.
so as per this rule salary should be taxable in 2006-2008
Vinay somani (CA, CS)
(Assistant Manager-Accounts)
(549 Points)
Replied 18 May 2016
then you have to recalculate income of 2006-08 as per salary plus arrear of salary and in current year treat it as receipt. then differental should be taxable.
Vinay somani (CA, CS)
(Assistant Manager-Accounts)
(549 Points)
Replied 18 May 2016
Exempted Gratuity is lower of following
1. Last Drawn salary X no. of years of emoloyement X 15/26
15000 X 2 X 15/26 = 17308
2. Rs 10,00,000
3. Gratuity actually received i.e 248000
Lower is 17308 so taxable gratuity is Rs. 248000-17308 = 230692
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