After 25 years of service, Mr. Aman retired on 1st May 2021. He received a gratuity of Rs 20,00,000. Calculate the taxable gratuity assuming that at the time of his retirement, his basic salary was Rs 50,000/month, DA was RS. 20,000 (50% of DA is for retirement benefits). He also received a 0.75% commission of the turnover when the turnover was reported as RS 1,00,00,000. He also received a bonus of RS 30,000 during the given previous year. Calculate the amount of taxable gratuity in the following three cases: a. Mr Aman is a government employee. b. Mr. Aman is a private sector employee and is covered by the Payment of Gratuity Act, 1972. c. Mr. Aman is a private sector employee and is not covered by Payment of Gratuity Act, 1972.

After 25 years of service, Mr. Aman retired on 1st May 2021. He received a gratuity of Rs 20,00,000. Calculate the taxable gratuity assuming that at the time of his retirement, his basic salary was Rs 50,000/month, DA was RS. 20,000 (50% of DA is for retirement benefits). He also received a 0.75% commission of the turnover when the turnover was reported as RS 1,00,00,000. He also received a bonus of RS 30,000 during the given previous year. Calculate the amount of taxable gratuity in the following three cases: a. Mr Aman is a government employee. b. Mr. Aman is a private sector employee and is covered by the Payment of Gratuity Act, 1972. c. Mr. Aman is a private sector employee and is not covered by Payment of Gratuity Act, 1972.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 21CE

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