Am I Eligible for Gratuity After 4 Years and 11 Months? Plus, Is It Taxable?

Hi, I have a few queries regarding gratuity entitlement for a private non-listed MNC in India. Request your help on the same:

Eligibility for Gratuity

1) Am I eligible to get gratuity if I have completed 4 years and 11 months in service? What is the minimum service requirement to be eligible to get gratuity?

Taxation on Gratuity

2) Is gratuity taxable?

Gratuity Calculation

3) Is the recent basic salary + DA considered for gratuity calculation? Or is it calculated based on each year's basic pay + DA?

Gratuity Eligibility at Resignation

4) If I have completed 4 years and 7 months at the time of resigning from my current job and my notice period is 60 days, will I be eligible to get gratuity on my last working day with the organization?

Eligibility for Gratuity

1) Am I eligible to get gratuity if I have completed 4 years and 11 months in service? What is the minimum service requirement to be eligible to get gratuity? - Yes, if you have worked for more than 4 years and 240 days in the same organization, then you are entitled to the gratuity claim.

Taxation of Gratuity

2) Is gratuity taxable? - Yes, it is exempted from tax for the gratuity amount below Rs. 20 Lacs.

Gratuity Calculation

3) Is the recent Basic salary + DA considered for gratuity calculation? Or is it calculated based on each year's basic pay + DA? - It will be the recent Basic + DA.

Gratuity Eligibility at Resignation

4) If I have completed 4 years and 7 months at the time of resigning from my current job and my notice period is 60 days, will I be eligible to get gratuity on my last working day with the organization? - Yes, your gratuity will be calculated considering the last working day in the company. The formula for calculating gratuity is Basic + DA / 26 * 15 * Number of Years in the organization.

Is gratuity taxable? Yes, it is exempted from tax for the gratuity amount below Rs. 20 lakhs. Income Tax Exemption is limited to Rs. 10 lakhs since the maximum gratuity payable as per Payment of Gratuity Act is Rs. 10 lakhs.

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