Gratuity exemption claim
This query is : Resolved
08 July 2012
Dear Experts
First I would like know conditions for claiming gratuity exemption u/s 10(10).
In one of the case, company took a voluntary resignation from all employees as per the terms of asset purchase agreement with some other company and new company took all these employees under new employment contract.
So in this case whether these employees are eligible to claim gratuity exemption or not?
First I would like know conditions for claiming gratuity exemption u/s 10(10).
In one of the case, company took a voluntary resignation from all employees as per the terms of asset purchase agreement with some other company and new company took all these employees under new employment contract.
So in this case whether these employees are eligible to claim gratuity exemption or not?
CA PARAS BAFNA
(Expert)
08 July 2012
Assuming that the case referred by you, is covered under the payment of Gratuity Act.
.
Gratuity is exempt to the extent -
1. 15 Days Salary (last Drawn)x No of Years in Service.
(Salary = Basic+DA in terms of employment)
( Suppose such Salary is 26000 15 days salary would be 15*26000/26)
2. 1000000
3. Actual Gratuity Received.
Which ever is less.
.
The employee will be eligible for exemption.
.
Gratuity is exempt to the extent -
1. 15 Days Salary (last Drawn)x No of Years in Service.
(Salary = Basic+DA in terms of employment)
( Suppose such Salary is 26000 15 days salary would be 15*26000/26)
2. 1000000
3. Actual Gratuity Received.
Which ever is less.
.
The employee will be eligible for exemption.
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