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GeekInterview.com > Interview Questions > Accounting > Payroll
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Question: How do you calculate Gratuity?
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| June 06, 2008 22:19:47 |
#2 |
| chintamani |
Member Since: June 2008 Total Comments: 7 |
RE: How do you calculate Gratuity?
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Gratuity is computed as below:
under Payment Act:
Under Sec 10(10) of IT Act
Actual Gratuity Received
Less Exemption under sec 10(10)
1. 15/26*completed year of service*10 months average salary
2. Actual Gratuity received
3.Max 350000
Among these which is least is eligible for exemption
Gratuity computation if employee is resigned,terminated or retired
Actual Gratuity Received
Less Exemption under sec 10(10)
1. 1/2*10 months average salary*completed year of service
2. Actual Gratuity received
3.Max 350000
Among these which is least is eligible for exemption
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