Is graduity recieved from a private company taxable?

gratuity is taxable in the hands of pvt. co. emp.But some amt is exempted u/s 10(10)(i)/ (ii) from amt received.

plz tell wether the employees are covered under gratuity act or nt to know the exemption limit.bz limits are different for covered and uncovered employees.

As per our company, follows 2 methods

1) Graduity act 1972

2) 2/3 of  basic  X   # of years of service

and it will give greater of above.

It also mentions that Gratuity is taxable abouve 350000 as per IT Act.

So I am confused whether tax exemtion is 350000 or 10 L for the above scenario.

Also as per point 2) my comany pays 2/3 of basic instead of 15/26 per year. So it the excess is taxable?

 Also what is the tax % if it taxable or it will be added with salary for the current year in form 16 and tax os arrived based on that?

Thank you

Regarding the taxability of the same, it will be included in your form 16 and will be taxed at the applicable slab of rate.

u should calculate gratuity as under:-

1) what u received ( u must received 2/3 of salaryof every year)

2)calculate as per grauity act 1972 ( 15/26 of last salary drawn * completed year of service)

3) 10,00,000

  whichever is higher

 u should include it in form 16 and it will be taxed at the given slab rate.