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Tuesday, 3 November 2020

How can we calculate Gratuity? Gratuity calculator


How can we calculate Gratuity? Gratuity calculator

How can we calculate Gratuity? Gratuity calculator


What is meant by Gratuity?

Gratuity refers to an amount of cash which an employer pays to his employee reciprocally for services offered by him to the corporate . However, only those employees who are employed within the company for five years or quite five years are given gratuity. Read also: How much gratuity will you get on leaving the job?

You may perceive gratuity like gratitude expressed by the corporate towards their employees for his or her services. it's governed by the Payment of Gratuity Act 1972.

What's the eligibility criteria for payment of Gratuity?

In order to receive gratuity, you would like to suit the subsequent eligibility criteria:

1. you ought to be eligible for superannuation

2. you ought to have retired from the work 

3. you ought to have resigned after remaining employed for five years with the corporate 

4. just in case of your death, or if you become disabled on account of sickness or accident. Read also: 2021 ni jaher rajao nu list

What is the formula for calculating amount of Gratuity?

The amount of gratuity are often calculated using the subsequent formula

Gratuity = n*b*15/26

Where n = tenure of service completed within the company

b = last drawn basic salary + dearness allowance

Imagine that you simply worked with XYZ company for a period of 15 years. Your last drawn basic salary along side dearness allowance was Rs 30000. Hence,

The amount of gratuity = 15*30000*15/26 = Rs 2,59,615. Read also: Kevadiya colony tamama vibhag ni tikit na rate ane detail

Two points got to be noted here:

As per the Gratuity Act, the quantity of gratuity can't be quite Rs 20 lakh. Any excesses would be treated as ex-gratia

If the previous couple of months within the last year of employment are quite 6 months, then it'll be rounded to next number. Suppose your tenure of service is 16 years 7 months, then you receive gratuity for 17 years. Otherwise for 16 years if it happens to be 16 years 4 months

What are the taxation rules for Gratuity?

The tax treatment of gratuity depends on the character of the worker who is in receipt of gratuity. There are 3 major categories during this 

The government employee who is eligible for gratuity the quantity of gratuity received by any government employee (whether central/state/local authority) are going to be exempt from tax. Read also: Maa yojna ane ayusman bharat yojna merge

Any other eligible employee whose employer is roofed under Payment of Gratuity Act during this case, last drawn salary of only fifteen days are going to be exempt from tax.

Any other eligible employee whose employer isn't covered under Payment of Gratuity Act Here, the smallest amount of the subsequent 3 amounts are going to be exempt from income tax:

a.Rs 10 lakh

b.The actual amount of gratuity received

c.Half month’s salary for each year of employment that the worker has completed with the employer.


Gratuity calculator


Frequently Asked Questions on Gratuity

Q. I resigned from my job after working for 4.5 years. Would I be eligible to receive gratuity?

A) No. you would like to finish a minimum of 5 years of service to be eligible for payment of gratuity. However, consistent with a ruling of Madras supreme court , an employee is eligible for gratuity just in case he completes 240 days of service within the fifth year of service. Read also: Tame navo lidho e phone brand new che k refurbised cheak karo

In yet one more case, if the worker dies during his employment, his legal heir are going to be eligible for gratuity albeit he didn't complete 5 years of service

Q. If a private may be a contract employee, will he receive gratuity upon completing 5 years in service?

A) If the individual is on the rolls of the corporate rolls, he are going to be considered an employee. He are going to be eligible to receive gratuity. But, if he's employed under a contractor who isn't a part of the corporate , then contractor are going to be responsible to supply the gratuity and not the corporate 

Q. Is there any upper limit on the quantity of gratuity which will be received?

A) Yes. the quantity of gratuity paid by a corporation cannot exceed quite Rs. 20 lakh, regardless of the amount of years of service of the utilization .

Q. what proportion time does the employer fancy release the quantity of gratuity?

A) Ideally, as per the govt mandate, the employer should remit the gratuity within 30 days from the date of full and final settlement of the worker . just in case of any delay in payment, the employer is susceptible to pay an easy interest on the gratuity from the maturity until the date when payment is formed .

Interest rates applicable for Loan against Property

Generally mortgage loans are charged a lower rate of interest as compared to non-public loans. As a result, the EMIs also are lower compared thereto of private loan. The interest charges varies consistent with the sort of property. as an example , rate of interest on a residential property would vary than that of a billboard property. As of now, real estate loan interest rates dwell the range of 12% to fifteen .75%. The rates could also differ supported whether you're salaried or self employed. additionally to the present , a processing fee adequate to 1-2% of the entire loan amount is additionally charged by the banks

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