Gratuity
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 February 2013
Please explain the meaning of dearness allowances.
Also the meaning of taxability gratuity received by an employee under Payment of Gratuity Act . Why is there a distinction when calculating tax liability.
Thank You
Also the meaning of taxability gratuity received by an employee under Payment of Gratuity Act . Why is there a distinction when calculating tax liability.
Thank You
08 February 2013
Dearness Allowance is generally given to the employees for meeting the higher and increasing cost of living.
.
Part or % of it may be considered for retirement benefits as per the service agreement between e&e.
.
Gratuity:
---------
There is a difference in a branded item and a general unbranded item. Payments made by the registered employers under the Gratuity Act are governed by the act and according to the norms set by the PG Act -contributions are made, to maintain the coherence between the Two Acts (IT & PG), such receipts are exempt. Only extra contribution results in taxable gratuity.
.
.
Part or % of it may be considered for retirement benefits as per the service agreement between e&e.
.
Gratuity:
---------
There is a difference in a branded item and a general unbranded item. Payments made by the registered employers under the Gratuity Act are governed by the act and according to the norms set by the PG Act -contributions are made, to maintain the coherence between the Two Acts (IT & PG), such receipts are exempt. Only extra contribution results in taxable gratuity.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- EPF FULL & FINAL RULES IN 2026
- Management System (IMS)
- Condonation . E-Verification of last year return .
- Rental income gst and it purpose
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Eway bill generation from place other than registeted
- FTS Taxable under 115A
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
