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 Payroll  |  Question 31 of 34    Print  
How do you calculate Gratuity?

  
Total Answers and Comments: 2 Last Update: June 01, 2008     Asked by: Smita 
  
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 Best Rated Answer
Submitted by: sunjas_man02
 
hello friends,

to calculate the gratuity: it has the formula

first we can calculate for one year.

Ex. One year Gratuity= Basic+D.A.   X 15
                                        26 


This is the formula to calculate the gratuity.


Above answer was rated as good by the following members:
dreamgirldream01
November 29, 2007 04:50:22   #1  
sunjas_man02 Member Since: November 2007   Contribution: 1    

RE: How do you calculate Gratuity?
hello friends,

to calculate the gratuity: it has the formula

first we can calculate for one year.

Ex. One year Gratuity= Basic+D.A.   X 15
                                        26 


This is the formula to calculate the gratuity.

 
Is this answer useful? Yes | NoAnswer is useful 1   Answer is not useful 0Overall Rating: +1    
June 01, 2008 22:19:47   #2  
chintamani Member Since: June 2008   Contribution: 7    

RE: How do you calculate Gratuity?
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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 Related Questions

Latest Answer : In India its Rs.3.5 lacs maximum ...
Read Answers (1) | Asked by : RAJA

Latest Answer : Gratuity is computed as below:under Payment Act:Under Sec 10(10) of IT ActActual Gratuity ReceivedLess Exemption under sec 10(10)1. 15/26*completed year of service*10 months average salary2. Actual Gratuity received3.Max 350000Among these which is least ...
Read Answers (2) | Asked by : Smita


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