Tds on gratuity

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Vinod Kumar Shukla (Querist)
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31 March 2014 Dear Expert,
Please let me know whether tds should be deducted on payment of gratuity or not.
If the answer is 'yes', at what rate it should be deducted?
If the answer is'no', how to deal with it if income tax department disallow the expense?

Thanks & regards,

Vinod Shukla

Rupesh Jain

Rupesh Jain (Expert)
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31 March 2014 if gratuity recd to govt employee is except.

and in pvt co.
for every year of service allow 15 days salary to employee
1)no years X 15 days x last basis salary/26 days = amount to be received
2)rs. 1000000/-
3) gratuity recd.
which ever is less.

it will be exempted.

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