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Query Details

Asked by Pankaj on :Jun. 14, 2018

What is would be the tax treatment for the gratui…

What is would be the tax treatment for the gratuity received on the retirement of employee, if it i…

What is would be the tax treatment for the gratuity received on the retirement of employee, if it is covered under the Payment of Gratuity Act?

0

Jeeba Jun. 14, 2018

Gratuity received on the retirement/death of government employees is exempted from tax.
In case of non-government employees and if such gratuity is covered under the payment of Gratuity act, least of following shall be exempted from tax and excess of this exemption shall be taxable.
1) Gratuity received
2) 1000000
3) 15 salary( basic+DA) for every completed year of service or part of year in excess of 6 months(15/26l*last drawn salary* year of service)

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