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Morning

The document outlines the calculation of gratuity and leave encashment for employees under the Payment of Gratuity Act 1972, detailing various components such as basic salary, dearness allowance, and special allowances. It provides examples of gratuity calculations based on years of service and salary structures, highlighting tax implications for different scenarios. Additionally, it discusses the entitlements for leave encashment and the tax-free limits applicable to employees upon retirement or leaving the organization.

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purohitrupeshkumar
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6 views7 pages

Morning

The document outlines the calculation of gratuity and leave encashment for employees under the Payment of Gratuity Act 1972, detailing various components such as basic salary, dearness allowance, and special allowances. It provides examples of gratuity calculations based on years of service and salary structures, highlighting tax implications for different scenarios. Additionally, it discusses the entitlements for leave encashment and the tax-free limits applicable to employees upon retirement or leaving the organization.

Uploaded by

purohitrupeshkumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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paid by employer

defined contribution defined benefit


EPF EPS
NO EPMPLOYEE CONT
GUARANTEED
GRATUITY

PAYMENT OF GRATUITY ACT 1972


CONTRACTUAL
COUNT LEGNTH OF SERVICE
MATERNITY SERVICE 26 weeks

1 covered under payment act of grautity 1972

basic full basic amount 75000


da full da amount 25000

employee 25 years 7 months


in the excess of 6 months
1 26
calculation of gratuity 1500000 (15/26)* legnth of service ( in excess of 6 month count one full year)*(basic + d

2000000 1 2000000
1700000 2 actual gratuity received
tax free 1500000 3 gratuity with formula

200000 taxable

AJAY IS WORKING WITH AN ORGANIZATION18 YEARS 5 MONTH


ORG IS COVERED UNDER PAYMENT ACT OF GRATUITY 1972
SALARY PER MONTH
BASIC 45000
DA 50% OF BASIC
SPECIAL ALLOWNACE 25000
HRA 18000

GRATUITY RECEIVED 14 LACS

CAL TAXABLE GRATUITY

ORG IS NOT COVERED UNDER PAYMET ACT OF GRATUITY 1972


1 2000000
2 ACTUAL GRATUITY RECEIVED

salary BASIC FULL BASIC


DA % part of ret benefits 40000 50% is part of ret benefit
commission as a % of turnover

1 500 per month


2 1% on 1 cr turnver

450000

1 2000000
2 1500000
3 602333.3 exempt 30000
8000
8333.333
salary 46333.33
897666.666667
1
2 not covered 15/30
3 covered 15/26

1-Dec-24
1-Apr-24 5000

feb nov
feb 4000
march 4000
4 four point no.4
entitlemntworking years
leve entitl 35 30 20

25 25

1
2
3
4

retired 30 years 8 months


leave encashment 10 lac
entitlemnt ofleave 40 leaves in ayear
leaves taken 800 during the service
basic 50000 per month
da 50% of basic (60% part of ret benefit)
last 12 months salary is same

taxable leave encahsment

500000
900 entitelent 150000
100 credit balance 650000
( in excess of 6 month count one full year)*(basic + da)

least of these three-exempt

1 2000000
2 1800000
3 675000 tax free exempt TAX FREE
1125000 taxable

ATION18 YEARS 5 MONTH


CT OF GRATUITY 1972

1 2000000
2 1400000
3 700961.5

699038.5 TAXABLE

T ACT OF GRATUITY 1972


(15/30)
only full year in the excess of 6 month

50% is part of ret benefit

fixed commission

1 2000000
2 2500000
3 1000000

basic
da
83333.333333
8333.3333333

hra+vrs+leave encahshment
full year of service full basic+da( part of ret benfit)+(% comm on turnver) last 10 months average
in the excess of 6 months full basic+full da

48000 basic
18000 da
66000 10 months average salary
26400 point no.4

"(credit balance/30)*(poin no.3/10)


600
480
120 credit balance
least is exempt
2500000
500000 a received
66000
26400 473600
taxable

pvt employee getting lenchas at the time of retiremnt or leaving the co


1 2500000
2 500000 a received
3 10 months salary
4 (credit leave balnce/30)*(poin no.3/10)

least of four is tax free

1 2500000
2 1000000
3 650000
4 216666.66667 tax free

783333.333333333 taxable l enchashment


last 10 months average

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