01 November 2008
Under the Payment of Gratuity Act, 1972 why 26 days are considered as one month in the formula (15/26 X Last drawn salary X Number of completed years of service or part thereof in excess of 6 months) for the computation of taxable amount of Gratuity?
03 November 2008
That is because 52 sundays in a year are eliminated and the balance 313 (working)days are considered for a year as denominator- and for one month divided by 12. The numerator is ofcourse half a month.
CAclubindia
