can any tell me detailed explanation for exemption of Gratuity u/s 10(10C)
CA Pradeep Gupta (CA) (155 Points)
11 December 2008can any tell me detailed explanation for exemption of Gratuity u/s 10(10C)
B.Nagesh
(MBA- CS Execuitve)
(151 Points)
Replied 11 December 2008
| Originally posted by :Pradeep | ||
| " | can any tell me detailed explanation for exemption of Gratuity u/s 10(10C) | " |
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 11 December 2008
If gratuity act applies than: (Whichever is lower)
1. Rs 350 000
2. Actual
3. Completed yr of service*15/26*Last drawn salary
If Gratuity act not applies: (Whichever is lower)
1. Rs 350 000
2. Actual
3. Yr of service (If 6M or more considard as full yr)*15/30*Avg salary of last 10 Months
Vinod Kumar
(PCC Student)
(41 Points)
Replied 11 December 2008
Gratuity not covered u/s 10(10C). It is Covered u/s 10(10)
Tax Treatment:-
1) For Govt. Employee - Fully Exempt
2) For other than Govt. Employee
a) If Payment of Gratuity Act 1972 Applicable
then least of the following will be exemp
(1) Actual Amount received
(2) Rs. 3,50,000
(3) 15/26 days SALARY for every completed year of job and considering a period of 6 months or more as a completed year
Here SALARY means = Basic Salry+DA
(b) If payment of Gratuity Act 1972 not applicable
Least of the following will be exempt
1) Actual amount received
2) Rs. 3,50,000
3) 15/30 days SALARY for every completed year (Ignore Fraction)
Here SALARY Means= Average Salary for Last 10 Months, immediately preeceding the month of retirement
SALARY= Basic Salary+D.A. (If forming part of salary for Retirement Benefit)+ % Based Commission
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