Gratuity calculaton

Whether employee is a government or non government employee? covered under gratuity act or not ?

For non-government employees covered under the Gratuity Act, the income tax exemption on any gratuity received is least of the following:

• Maximum amount specified by the government which is currently Rs. 10 lakh
• Last drawn salary X 15/26 X years of service
• Actual gratuity received

Your Question, Exempt Lower of Following :

1. Rs. 10  Lakh

2. (10 Years 7 Month)  45000*15/26*11    =   2,85,577

3. Actual

Originally posted by : Jitendra
	Thanks for replying with the precious advice. Could you just tell me if employee would have completed 10 years 6 months only. Could we consider 11 years.

No, You can't