Pls. clarify. If we make the provision for Gratuity, is TDS applicable
From India, Bangalore
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From India, Bangalore
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Gratuity is given after five year of continioue service however tds is deducted every monted on the basis of his salry
From India, Delhi
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From India, Delhi
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Thanks for the reply. We are deducting the TDS on Salary. My query is if we make the provision for Gratuity without flowing out the money and only it is in books of accounts. Pls. clarify
From India, Bangalore
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From India, Bangalore
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dear there is no earning and no payment is made to anyone .you are just making provisions only.when payment is not made than TDS will not be deducted. tks j s malik
From India, Delhi
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174From India, Delhi
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Dear,
Payment of Gratuity is taxable for any amount above Rs. 3.5 lakhs. As per the Gratuity Act, there is a ceiling for Tax exemption only up to a payment of Rs. 3.5 lakhs. Any amount paid above that is subject to tax liability.
Regards, Dilip Satpute
From India, Mumbai
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Payment of Gratuity is taxable for any amount above Rs. 3.5 lakhs. As per the Gratuity Act, there is a ceiling for Tax exemption only up to a payment of Rs. 3.5 lakhs. Any amount paid above that is subject to tax liability.
Regards, Dilip Satpute
From India, Mumbai
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Can anybody explain why this gratuity should be paid by the employer and how it should be paid? For instance, if someone has been working at an organization for 5+ years and during the same period, the company incurs losses for 3 or 4 consecutive years, what is the procedure in such a situation?
Additionally, should the employee maintain any provisions for this gratuity?
From India, Hyderabad
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Additionally, should the employee maintain any provisions for this gratuity?
From India, Hyderabad
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Dear Shobha,
The gratuity gets accumulated in the records after the completion of 5 years of service. At the time of your retirement, the sum will be settled along with other monetary benefits by your employer.
Regards,
Saraswathi
From India, Bangalore
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The gratuity gets accumulated in the records after the completion of 5 years of service. At the time of your retirement, the sum will be settled along with other monetary benefits by your employer.
Regards,
Saraswathi
From India, Bangalore
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc