Retiring Soon? Need Help Understanding Gratuity Calculation and Tax Implications?

Dear Sir,

I am an MNC company employee retiring on July 31, 2010, after 39 years and 7 months of service. As per the wage agreement with the Union and Management, I am covered under the Payment of Gratuity Act 1972. According to the Gratuity Act, section 10(10), employees are divided into 3 categories:

1. Central/state and local authorities employees.
2. Employees covered under the Payment of Gratuity Act 1972.
3. Other employees not covered under the gratuity act.

Kindly enlighten me on which category I am covered and how to calculate my Gratuity. My Basic + DA will be around Rs. 43,700.00. As per the information provided, our company management calculates gratuity using the following formula:
10 months' average salary immediately preceding the month in which the person retires divided by 30 x 15 x number of years. Is this calculation correct in my case? Also, please let me know if I am eligible to receive gratuity as per the new amendment and whether I have to pay any income tax on my gratuity amount.

Kind regards,

P.S. Sivan Pillai.

So far, I have not received any reply. I request you to look into the matter and help me in getting the required information.

Thank you.

I have prepared a Gratuity Calculation for the employees who are under the Gratuity Act of 1972. You may view this attachment.

Dear Sirs,

My colleague joined our company (Pvt. Ltd.) on 11th March 2012, and the last date of working was 29th December 2016. Will he be eligible to earn gratuity under Clause (2) and the continuous service clause in the act?

Also, for a 5-day working organization, 190 days are required in the year preceding such date. However, in our organization, we have alternate Saturdays off. So, how many days are required?

Please help.