My current graduity is accumated to
495000 and I am working in a private company. I heard that Graduity is taxable when we receive while leaving the company?
I know that Graduity is not taxable for Govt. employees. Is it same for private company employees also?
My company gives 2/3 of basic for every completed year as Graduity. In that case how will it work. also What is the % of tax to paid, if it exceeds the eemption limit? thank you
No for employees of private companies gratuity is taxabl. Exemption is computed as follows
Covered by Payment of gratuity act, then least of following
a) last drawn salary/26*15*number of completed year of service. (if part of year more than 6 months then taken as full year)
b) Rs 10,00,000/-
c) gratuity amount received.
Not Covered under Payment of gratuity act, then least of following
a) average of last 10 months salary*1/2*number of completed year of service (ignore part of year)
b) Rs 10,00,000/-
c) gratuity actually received.
Salary for this purpose means- Basic + DA
O P Bagla & Co LLP
New Delhi
CA Inter
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BHUPINDER SHAH AND COMPANY
New Delhi
CA Inter
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