09-23-2010, 07:32 PM
Gratuity is seprate block of income.
2. Tax on Gratuity payment from unapproved gratuity scheme is computed on the basis of preceding three years average rate i.e. 14% as given in the question, if this amount is added in the current year's income along with golden handshake payment then applicable tax rate will be 19%. (Circular # 17 of 1959, Circular # 16 of 1967, C. # 4(23)-IT-3/77, 30/10/77)
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2. Tax on Gratuity payment from unapproved gratuity scheme is computed on the basis of preceding three years average rate i.e. 14% as given in the question, if this amount is added in the current year's income along with golden handshake payment then applicable tax rate will be 19%. (Circular # 17 of 1959, Circular # 16 of 1967, C. # 4(23)-IT-3/77, 30/10/77)
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