Taxability of gratuity
This query is : Resolved
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.
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.
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.
The calculation monthly salary*15/26*no of years of service.
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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)
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)
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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.
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.
18 November 2014
Yes. Surely. Go ahead accordingly.
18 November 2014
Pleas send me write up or back up for Payment of Gratuity Act Applicability.
18 November 2014
https://labour.gov.in/upload/uploadfiles/files/ActsandRules/SocitySecurity/ThePaymentofGratuityAct1972.pdf
try this link
try this link
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