Taxability of gratuity

This query is : Resolved

Sandeep (Querist)
Follow

18 November 2014 Dear Sir/Madam,

I have one query regarding taxability of gratuity paid to resigned employee. Please find the exact details for your kind persual-
No. of years of service - 7 years
Basic - Rs.23600/-.
Actual Paid - Rs.95308/-.
Exemption Limit - Rs.350000/-.

Requesting you to please tell me the taxable and exempt amount with backup.

Thanks & Regards,

Sandeep N. Nangre.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 November 2014 The actual amount paid Rs.95308 is as per gratuity calculation which is fully exempt.
The calculation monthly salary*15/26*no of years of service.

Message likes : 1 times

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

18 November 2014 ASSUMING YOUR CASE FALLS U/S 10(10)(iii), i.e. private companies where Payment of Gratuity Act is NOT applicable.
1/2 months salary for every completed year of service is exempt.

= 23,600/2 X 7 = 82,600
(Another assumption: calculated on the basis of the average salary for the ten months immediately preceding the month in which any such event occurs)

Message likes : 1 times

Sandeep

Sandeep (Querist)
Follow

18 November 2014 Mr.Seethraman & Amol,
Thanks for reply me immediately.

Yes, We falled under Private Company. Average of last 10 month salary is = total basic/10 = 213923/10 = 21392, in that case the gratuity paid of Rs.95308/- is exempt fully or partly and backup of the Payment of Gratuity Act applicability in various cases.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

18 November 2014 Yes. Surely. Go ahead accordingly.

Sandeep

Sandeep (Querist)
Follow

18 November 2014 Pleas send me write up or back up for Payment of Gratuity Act Applicability.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

18 November 2014 https://labour.gov.in/upload/uploadfiles/files/ActsandRules/SocitySecurity/ThePaymentofGratuityAct1972.pdf
try this link

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

kavita goel

venkanna setty

Sivanath VV

Shivchandra Jakhotia

jaspreet sidana

Subscribe Now

Taxability of gratuity

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA