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Thanks for this wonderful information. However, this ppt talks only about the formulae that is used to calculate the eligible gratuity for a person.
However, it would be great and also complete, if you could help calculate the tax payable on the gratuity.
The gratuity law very clearly states that the min period of eligibility is 5yrs and also more than 6months of service is treated as full year.
E.g if an employee completes, 8yrs8months, he is eligible for gratuity of 9yrs.
However, when the tax payable on this gratuity is calcuated, the employers still consider 8yrs and number of completed years and thus the employee ends up paying more tax. I think even for computing tax, 9yrs must be considered.
Comments pls
From India, Pune
However, it would be great and also complete, if you could help calculate the tax payable on the gratuity.
The gratuity law very clearly states that the min period of eligibility is 5yrs and also more than 6months of service is treated as full year.
E.g if an employee completes, 8yrs8months, he is eligible for gratuity of 9yrs.
However, when the tax payable on this gratuity is calcuated, the employers still consider 8yrs and number of completed years and thus the employee ends up paying more tax. I think even for computing tax, 9yrs must be considered.
Comments pls
From India, Pune
Thanks so much for the powerpoint presentation on Payment of Gratuity. My company is a young company privately owned with a responsive leader that has the interest of his employees at heart. I am trying to overhaul the company's gratuity process and needs to get the correct calculation formular for effective implementation.
From Nigeria, Lagos
From Nigeria, Lagos
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc