Dear all,
one of my client worked in LIC Company for 25 years and received gratuity Cheques of about 65000/-
Please advice, is gratuity is taxable in my client hends with reference to Sections.
And also provide me calculation of Gratuity in this case.
CA. Priyanka Vijay
Gratuity calculation:
Minimum of the following:
1) Actual gratuity received
2) 15 days salary of completed years
3) Rs. 10 lacs
Note:
Salary includes salary + dearness allowance.
Number of days per month is 26.
For example:
Salary - Rs. 200,000/- pa
Number of years service - 12 years
Gratuity shall be 13,84,615/- (200,000 x 15/26 x 12)
Gratuity paid can be sometimes more than the gratuity calculations.
CCI
Pro
CAclubindia
