While computing gratuity (covered under payment of gratuity act)
under exemptions u/s 10(10)
15/26 means what?
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income tax
Replies (6)
15/26 means the gratuity r to be computed
merely for the "working days" which r 26 days
AMOUNT OF GRATUITY IS WORKED BY TAKING THE NUMBER OF DAYS OVER 26 DAYS FOR MONTHLY PAY. IN OTHER WORDS MONTHLY SALARY IS CONSIDERED AS PAID FOR 26 DAYS INSTEAD OF 30/31 DAYS AS THE CASE MAY BE.
15/26 mean.... Basic Salary per month is divided by 26 days (as against 30/31 days...it is just based on working days removing 4 sundays) and the factor is multiplied by 15 days. It is nothing 15 days basic salary is given as gratuity as per Payment of Gratuity Act.,
please let me know the income tax calculation u/s10B with relation to tax u/s.115jb for the f.yar 2007-08 with example.
It is the same as in Gratuity Act without 1972 in which 1/2 is taken instead 15/26 as 26 (directs to be 2) excludes sundays and 15 directs to be 1.
15 days of basic salary is given as per Gratuity Act
26 days are the no of working days.
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