Income tax query plz solve it ASAP

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itika mehra

articled assistant

143 Points Posted on 03 March 2010

Hey plz help me out in my small query of income tax

(a)Calculate taxable gratuity,vn on retirement aftr 24 yrs of continus service on 5-8-2009 R rcvd retirement gratuty of 360000 based on 1 mnth salary fr each yr.his salary in calendar yr 2004 was 10000p.m.since when it has incresead @ Rs. 1000 p.m. each yr. his salary is due on last day of evry mnth,

the curct answr fr dis is 183600 bt im nt getting dis can anyone hlp me to gt dis?

Replies (4)

Amir

Learner

4898 Points Posted on 03 March 2010

Dear Itika,

Least of the following will be exempt -

1) Gratuity Received = Rs. 3,60,000

2) Limit as prescribed =Rs. 3,50,000

3) Amount as computed = 1/2 month Average salary of past 10 months x No. of. years of service

= 1/2 {(15000*7 + 14000*3)/10} x 24

= 1,76,400

Therefore Taxable Gratuity is Rs. 3.60 Lacs - Rs. 1,76,400 = Rs. 1,83,600

Note : -Salary = 15000/month in Calender year 2009 i:e January'09 to July'09 = 7months

+ 14,000/month in Calender year 2008 i:e October 2008 to December 2008 = 3 months

Vidya

Service with a reputed CA firm

68 Points Posted on 03 March 2010

hi itika, the person's sal for the calender year 2009 will be 15000 and for 2008 it will be 14000 Avg Salary of the last 10 months immediately preceding the date of retirement will be 147000/10=14700 least of the following is exempt amt actually recd 360000 statutory limit 350000 1/2*24*14700 176400 therefore taxable gratuity 360000-176400=183600