Gratuity & leave encashment

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Amol Gadekar (Querist)
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20 February 2014 How Do I Calculate Gratuty For LAst Five Years( last Drawn Salary means for That Year or Current year's)B'coz i calculate Provisions for last five years for both Gratuity & L.E.?
Pls Sugest Me

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 February 2014 for gratuity, please refer

http://taxguru.in/income-tax/tax-treatment-of-gratuity-under-the-income-tax-act-1961.html

for leave encashment

http://www.simpletaxindia.net/2009/01/leave-salary-encashment-exemption.html

Amol Gadekar

Amol Gadekar (Querist)
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20 February 2014 Sir We have to pass Last five years Provision for IPO Purpose then Which salary Has to be take.(Last drawn Salary) For Gratuity?

Amol Gadekar

Amol Gadekar (Querist)
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20 February 2014 Suppose i want to Make Provision For F.Y.2008-09 then?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 February 2014 for accounting for provision for gratuity you need to do acturial valuation. So let the actuary do that.