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Gratuity Money Calculation: Gratuity is a financial benefit that employees who serve for five years. This advantage applies to institutions where there are 10 or more employees. Retirement time …Read more
CA Pradeep is giving Harsaria information
Highlights
- Work in the same company is essential to gaining the benefit of the gratitude.
- The quantity of gratitude has been fixed on the basis of the final monthly salary.
- The maximum amount of up to Rs 20 lakh is tax -free.
Codema. Long -time employees in private and public institutions are given a financial gift by the organization for their service. CA Pradeep Harsaria said in a conversation with local 18 that an employee working in any private or public institution needs to work in the same institution for at least five years so that he can benefit. If a person quits his job before a five -year completion or a change of institution, he does not get the benefit of grant.
He said that the benefits of gratitude are available in the institutions where 10 or more employees are employed and where the ESIC facility is available.
How Gratuity is decided
Pradeep Harsaria said the grant amount is decided on the basis of the last monthly salary of the employee’s retirement time. In this, the salary of 15 days of the last month has increased to 26 and has been offered years. On the basis of this, the total amount of grate is determined.
Supply of income tax discounts
He said that the maximum amount of up to Rs 20 lakh received in the form of a grant is under the scope of income tax.
Gratuity can also be found in the form of debt
If after completing a five -year service, the employee needs money in a comfortable situation, he can also get the grate of grate as a loan. However, its last settlement is only when the employee’s retirement or leaving the company.
. Rights of employees
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