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Chapter No. 03 - Salary - Gratuity - [Sec. 10(10)]
In this case 30 years will be taken as completed year of service.
15 days’ salary = 3,100 x 15/26 = 1,788.46
Out of ₹ 62000 received as gratuity, the least of the following will be exempt from tax:
₹ 53,653.85 being the least of the three sums, is exempt u/s 10(10)(ii).
The balance of ₹ 8,346.15 is taxable for the assessment year 2015-16.
Gratuity exemption: part determined by 15 days salary times completed years, excess treated as taxable salary. Gratuity exemption is determined by taking the least of: the product of 15 days' salary and completed years of service, the statutory ceiling, and the gratuity received. Completed years may be rounded to include qualifying months. The exempt portion is that least amount; any excess over the exempt amount is taxable as salary income in the assessment year. of Press 'Enter' after typing page number.
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