Question

explain the exemption given for gratuity​

Answer 1

Answer:

Gratuity exemption least of three vuntundi

1) 20 lakhs

2) Actual gratuity recieved

3){15/26×(last drawn salary)×[no of years service]

Fo example if a employee worked for 22 years 6 months then the service will be considered as 23 years

If he works for 22 years 5 months service will be considered for 22 years

The entire thing stated above is applicable only if the employee is in receipt of the gratuity and also the company which he is working in should be covered by the gratuity act

If the employee is not covered under gratuity act

1)20 lakhs

2) Actual gratuity recieved

3)1/2×(average of the 10months salary which he received immediately preceding the month of retirement or death)× completed years of service (fraction shall be ignored

Explanation: