Tax Treatment of Gratuity as per Income Tax Act,1961 is covered U/S 10(10) of the Act. In case of retirement, resignation or termination, you have to consider Income Tax liability on propose receipt of Gratuity. If Gratuity is received by employee himself, it will be taxable under head salary while if it is received by legal heir on death of employee, It will be taxable under “Income from other sources’ to the extent it is not chargeable to tax as per below mentioned provision
Showing posts with label Gratuity Calculator. Show all posts
Showing posts with label Gratuity Calculator. Show all posts
Tuesday 12 September 2017
Saturday 14 May 2016
Introduction
Gratuity is the
payment made by the employer to his ex- employee for his past services.
Gratuity is similar to a gift given by employer for appreciation of past
services of his employee . The technical definition of gratuity given by ICAI
is “gratuity is a voluntary payment made by an employer in
appreciation of services rendered by employee .
Monday 7 July 2014
As per the latest Gratuity Act which is already amended and enhance the amount of Gratuity up to Rs. 10,00,000/-( Maximum Admissible ). It seems that the Calculation of Gratuity have differ from any Non Govt Employees. The Govt Employees can get the Retirement Gratuity as per the Govt ( Central and State ) Rules. But the Private as well as Non Govt Employees get the Gratuity Amount in other method. The Govt employee get the Retirement Gratuity in the Formula :-
Formula for Govt Concerned (Basic Pay + Grade Pay) X Length of Service X 2/4.
If you are a Govt employee you will be fit for this Formula as mentioned above.
The Govt concerned have there own Software which is called for Salary Generate Software and in the various name of the software, like as COSA and others name. But this Salary Generate Software can prepare only the Salary, except the any Retirement Benefits of an Govt employee. Below given very simple handy Excel Based Gratuity Calculator, which can calculate easily your Retirement Gratuity. Also given below the link of Online Gratuity Calculation for Govt Employees. This Excel Based Software can also calculate automatically your total length of Sertvice after giving your Date of Join and Date of Retirement.
Click here to Download the Gratuity Calculator for Govt Employees
Click here to Download the Gratuity Calculator for PVt. Employees
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