Under the Payment of Gratuity Act, 1972 why 26 days are considered as one month in the formula (15/26 X Last drawn salary X Number of completed years of service or part thereof in excess of 6 months) for the computation of taxable amount of Gratuity?
52 sundays are deducted from 365 days and the balance is divided by 12 to arrive at 26 for the denominator. The numerator of course is half a month.
| Originally posted by :PRABEER SARKAR | ||
| " | Under the Payment of Gratuity Act, 1972 why 26 days are considered as one month in the formula (15/26 X Last drawn salary X Number of completed years of service or part thereof in excess of 6 months) for the computation of taxable amount of Gratuity? | " |
is that last drawn salary - gross , basic , net salary.
All Sundays in a month are excluded from calculation and hence, 26 days in a month are considered to be working days. That's the reason for having the denominator as 26 days.
Bala
www.cogzidel.in
Thanks 2 All.
If Gratuity is paid as per POGA 1972, What is the maximum amount payable as gratuity?.
if my salary is 22000 basic pay d.a 13200 gratuity calulation
3.5 Lakh at the most....
| Originally posted by : Jayesh G Khona | ||
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If Gratuity is paid as per POGA 1972, What is the maximum amount payable as gratuity?. |
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