One of client has served for 7 years, 2 months and 26 days. Wages last drawn per month Rs. 20912. And he has recived around 84k as Gratuity.
1. Is Gratuity received Taxable ?
2. If yes How much need to pay ?
And what are the conditions?
3. How to Know if the employer has covered under the payment of Gratuity Act or not ?
1.government employee exempted
non government employees taxable
non government employees covered under the gratuity act then
minimum of the following will be exempted
a. 10 lakhs
b.actual gratuity received
c.amount of gratuity an employee is eligible to received
non government employees not covered in gratuity act then the minimum will
be exempted
a . rs 10lakh
b. actual gratuity limit
c half months average salary for each complete of service
employees must be in continuation service of 5 year's with the same employers and the total employees strength of the employer shall be more than 10 members then they covered under gratuity act ..
CAclubindia
