If we have paid an employee a gratuity amount of rs 12 lacs.Then how much amount is considered taxable to calculate his total income.
5 Replies
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 09 October 2012
least of the following is exempt :-
1. Gratuity received
2. Monetary limit of Rs. 10,00,000
3. Half - month's salary for every year of completed service.
in this case, plz specify salary information.
Regards
Piyush Tanwar
Article Assistant at Tiwari & Associates, Karol Bagh, New Delhi
Email - imcoolpiyush.tanwar @ gmail.com
Mobile No. 09717468521
vaishali
(student)
(30 Points)
Replied 09 October 2012
1)okay, so as per you if the gratuity amount is Rs 12 lakhs so it is liable for taxation.Right?
2)Also, how much amount would be taxable.Rs 12 lakhs or Rs 2lakhs(i.e above 10 lakhs)?
3)Is it like no gratuity or zero gratuity is applicable to an employee if amount exceeds 10 lakhs??
ABHINAV SHUKLA
(CA-Final)
(203 Points)
Replied 09 October 2012
not as per u , it is as per income tax act 1961. ok
or taxable gratuity will be 2,00,000 . and maximum exemption of gratuity depends upon last drawn salary if he covered under gartuity act .
and if he is not covered under payment of gratuity act then avg. 10 month salary .
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 10 October 2012
Taxable gratuity will be Rs. 2,00,000.
Maximum exemption is Rs. 10,00,000 under gratuity Act , 1972.
Regards
Piyush Tanwar
Article Assistant at Tiwari & Associates, Karol Bagh, New Delhi
Email - imcoolpiyush.tanwar @ gmail.com
Mobile - 09717468521
Regards Piyush Tanwar Article Assistant at Tiwari & Associates, Karol Bagh, New Delhi Email - imcoolpiyush.tanwar @ gmail.com Mobile No. 09717468521
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Rahul Kakhani
(Artical )
(32 Points)
Replied 28 June 2013
Supoose a employee basic salary is 61647 Rs and he is not take DA
Gratituty Recived - 1849410
Exemption Amount
Actual Recived- 1849410
Max. 1000000
Half month salary 61647*15/26*26= 924709
So taxfree amount is 924709
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