please, anyone send me about provision for gratuity and its calculation
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Provision for gratuity
Replies (5)
gratuity is covered under section 10(10) of the act
TAXATION OF GRATUITY- received after retirement
It is fully exempt from tax u/s10(10)(i) if received by a central/state govt employee( BUT not statuory corpn employees)
for an "PAYMENT OF GRATUITY ACT 1972" least of the following 3 is exempt
a. 15 days last drawn salary- for every year of service(any fraction above 6 months is taken as one year)
b. amount "fixed" by central govt ie 350,000
c.actual gratuity recieved
For any other emloyee
exempt u/s10(10)(iii)
for above point a (1/2 month's) salary for every FULL year of service(fraction ignore)
For gratuity valuation you have to take the service of actuarial
AS PER AS-15 "EMPLOYEES BENEIHTS", FOR THE PROVISION OF GRATUITY YOU HAVE TTO TAKE SERVICES OF ACTURIAL.
ACTURIAL SHALL CALCULATE THE AMOUNT OF GRATUITY PROVIDED FOR THE CURRENT YEAR CONSIDRING THE AGE, NO. OF YEARS SERVIAES RENDERED, REMAINING PERIOD OF SERVICE ETC.
THANKS.
NIKHIL MITTAL
| Originally posted by :Prem Kumar | ||
| " | gratuity is covered under section 10(10) of the act TAXATION OF GRATUITY- received after retirement It is fully exempt from tax u/s10(10)(i) if received by a central/state govt employee( BUT not statuory corpn employees) for an "PAYMENT OF GRATUITY ACT 1972" least of the following 3 is exempt a. 15 days last drawn salary- for every year of service(any fraction above 6 months is taken as one year) b. amount "fixed" by central govt ie 350,000 c.actual gratuity recieved For any other emloyee exempt u/s10(10)(iii) for above point a (1/2 month's) salary for every FULL year of service(fraction ignore) |
" |
GRATUITY PRVISIONS AS PER AS-15 EMPLOYEE BENEFITS IS CALCULATED BY ACTURIAL. THERE ARE DIFFERENT PROVISIONS FOR GOVT & NON GOVT EMPLOYEE
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