I changed my job in the month of July 2005 from a PSU where i as working for over 10 years. I received gratuity as terminal benefit . I also withdrew my entire PF balance with the employer, on leaving thejob. I joined another job where my PF is being deducted regularly. Thus for FY2006 i will have my Form 16 from two employers.
Please let me know
whether gratuity is exempt from tax
whether PF withdrawal is taxable.
thanks and regards
Menu
PF withdrawal tax
Replies (1)
Gratuity--- least of following will exempt @
1.Rs.3,50,000
2.Gratuity received
3.15*(salary last drawn/26)*10/11#(#if u have served more than six months in a 11th year )
So in your case
Assumed that Basic salary is rs.20000p.m.+da rs.2000p.m.
1.Rs.3,50,000
2.Rs.2,00,000(assumed to be received)
3.Rs.{15*(Rs.22000/26)}*11=Rs.139615
so least of above Rs.1,39,615 will be exempt
@ provided u r governed by payment of gratuity act 1972
PF-pf will be exempt for the 2006-07
1.Rs.3,50,000
2.Gratuity received
3.15*(salary last drawn/26)*10/11#(#if u have served more than six months in a 11th year )
So in your case
Assumed that Basic salary is rs.20000p.m.+da rs.2000p.m.
1.Rs.3,50,000
2.Rs.2,00,000(assumed to be received)
3.Rs.{15*(Rs.22000/26)}*11=Rs.139615
so least of above Rs.1,39,615 will be exempt
@ provided u r governed by payment of gratuity act 1972
PF-pf will be exempt for the 2006-07
Recent Topics :
- LTCG - SEC54
- Foreign remittance from our client for Co Working
- UDIN generation
- Reply plz guys
- Tax Deduction and Collection Account Number
- Where can students practice XAT PYQs effectively?
- Gst on Guest house 5% without ITC
- How do you collect documents from clients for ITR
- GST ITC on Construction/ Tenant Specific Renovatio
- GST Treatment and Reporting of Share & Mutual
Related Topics :
CAclubindia
