Sir/Madam,
We process and pay gratuity (to whoever is entitled to receive) along with the last month's salary when the employee is relieved, and they get full and final settlement computation duly acknowledged. Is it necessary to obtain a formal application form (Form I) for gratuity from such individuals? Please clarify.
Thanks in advance.
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We process and pay gratuity (to whoever is entitled to receive) along with the last month's salary when the employee is relieved, and they get full and final settlement computation duly acknowledged. Is it necessary to obtain a formal application form (Form I) for gratuity from such individuals? Please clarify.
Thanks in advance.
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It is not mandatory that the employee should give Form I. However, it is advisable to obtain an acknowledgment in Form L, which serves as a notification to the employee to collect the amount. The Form L is attached for your reference. The acknowledgment section in the provided form does not comply with statutory requirements, but I have included it for the convenience of HR personnel.
From India, Kannur
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4490From India, Kannur
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Dear Sir/Madam,
I have the following questions regarding the applicability of income tax (and exemption thereon) on leave encashment (for leave standing to an employee's credit at the time of resignation and relieving) payable to private limited company employees (non-government) and income tax working on total salary payments:
1) Will tax exemption apply (fully or partially) under section 10(10AA)(ii) for non-government employees subject to applying the least of four conditions (such as Cash equivalent to earned leave as per IT rules (leave credit in months * 10 months' average salary) OR 10 times the average monthly salary OR Maximum amount exempted (Rs 3 lakhs including amounts received from prior employers if any) OR the actual amount of leave encashment received on relieving--whichever is the least of these)?
2) When an employee is relieved on the 21st of a month, say June, in order to calculate the average salary of the 10 months preceding retirement/relieving, should it include the month of June as well (i.e., from the last September to June) OR should the salary of the 10 months prior to June (i.e., from the last August to May excluding June in which one is relieved) be considered for average salary calculation?
3) For income tax working for 3 months in the current fiscal year, will the standard deduction of Rs. 50,000/- fully apply?
Thank you in advance for your support.
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I have the following questions regarding the applicability of income tax (and exemption thereon) on leave encashment (for leave standing to an employee's credit at the time of resignation and relieving) payable to private limited company employees (non-government) and income tax working on total salary payments:
1) Will tax exemption apply (fully or partially) under section 10(10AA)(ii) for non-government employees subject to applying the least of four conditions (such as Cash equivalent to earned leave as per IT rules (leave credit in months * 10 months' average salary) OR 10 times the average monthly salary OR Maximum amount exempted (Rs 3 lakhs including amounts received from prior employers if any) OR the actual amount of leave encashment received on relieving--whichever is the least of these)?
2) When an employee is relieved on the 21st of a month, say June, in order to calculate the average salary of the 10 months preceding retirement/relieving, should it include the month of June as well (i.e., from the last September to June) OR should the salary of the 10 months prior to June (i.e., from the last August to May excluding June in which one is relieved) be considered for average salary calculation?
3) For income tax working for 3 months in the current fiscal year, will the standard deduction of Rs. 50,000/- fully apply?
Thank you in advance for your support.
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FW Full and final settlement of all my dues including salary leave encashment Gratuity PF .zip
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
Income Tax Calculator.xls