ILLUSTRATION 6 << company paid him Mr. Ajay a Service Engineer of AB Ltd retires on 30/11/2020, o ee gratuity of & $5,000 for 32 years and 10 months of service. His salaty details surement benefit = Basic pay 7 4,500 p.m., D.A. 50% of Basic pay of which 25% enters £0 Fo 7 during 2019-20. ~ en * Basic pay was ¢ 4,700 p.m., D.A. ¢ 1200 pan. during the previous year 2020-21. " D.A. enters into retirement benefit at uniform rate. (© Scanned with OKEN ScannerILLUSTRATION 9 : po Mr. Kumar retired on 10th April 2020 after serv; for 30 years and 7 months. He was getting salary of € 15,000 p.m, won COT 0 zon thereafter 7 15,600 p.m. he received D.A #@ %3,000 p.m (fornfing part of salary for retirement benefits) and 2% commission on sales achieved by him. Turnover by him during 10 months (proceeding the month in which he retired) is = 24,00,000. He received gratuity of € 4,68,000. Compute the exempted amount of gratuity.( He is not covered under the Payment of Gratuity Act.) (BBM Nov. 2012) © Scanned with OKEN ScannerHhbseaton- 16 (BBM, Nov. - 2002) (modified) Mr. Anand Shankar (resident), retired from service in Mysore Minerals Ltd., on 31st December 2020. Inthis company, he has put in 33 years and 9 months of service. On retirement, the company paid him a gratuity of ¥ 3,25,000. His monthly salary at the time of retirement (since 1-10-2015) was & 12,000, DA® 3,000 and H.R.A. % 2,000, Find out the exempted amount of Gratuity if he is: a) Covered under the Paymentof Gratuity Act 1972.b) Not covered under the Payment of Gratuity Act 1972, (Ignore Alternative Tax Regime under Section 115BAC) Solution: © Scanned with OKEN ScannerIllustration - 17 (BBM, April- 1998,)(B.Com, Nov. - 2014) (modified) ee Mr. Ganguly (resident), a marketing manager in Kolkata, retired from XYZ Ltd. on Dec. 15, 2029 after 28 years and 8 months of service and receives % 3,50,000 as death cum retirement gratuity. His average basic salary for the preceding. 19 months ended on 30 Nov. 2020 was % 18,200 per month, Besides, he has received % 1,000 per month as DA, 80% of which form part of the salary for the purpose of computation of all retirement benefits and 6% commission on turnover achieved by him. Total turnover achieved by him for 10 months ended on 30th Nov 2020 is ¥ 1,50,000. Assume he is not covered under Payments of Gratuity Act. Compute the taxable gratuity for the A.Y. 2021-22. (Ignore Altefnative Tax Regime under Section 115BAC) Solution: (© Scanned with OKEN Scanner‘Aditri Co. & Asmita Illustration ~ 22 nies — ti Sri. Bhagavathi Prasad, Marketing Specialist is working with two poe ‘out of which © 20,000 is Co. He retires from Aditri Co, on 30/11/2015 & receives ¢ 22,000 as grat OF ceryice and receives ars & 8 moreceding 10 months ended exempt. He also retires from Asmita Co. on 10/12/20 after 28 yea %2,90,000 as gratuity. His average Basic salary drawn from Asmita Co. for PRS nich forms part of on 30/11/2020 is ¢ 18,200. Besides, he has received & 1,000 p.m. as DA 809 ord by him during ten salary & 6% commission on turn over achieved by him. Total turnover achiev" 0A, J901.99, months ending on 30/11/2020 is % 2,00,000. Find out taxable amount of gratuity fo! (Ignore Alternative Tax Regime under Section 115BAC) (© Scanned with OKEN Scannerjoyee oe euveree = illustration - 18 (B.Com, Dec. -2008, Nov.- 2017) (modified) ny for 32 Years and 19 Sri Veeresh (resident) retired on 31.3.2021 after serving ina COMPUT egiately precedi months. He received % 1,78,000 as gratuity. His average monthly salary 720. 2994-22. (Gratuityig 10 months was € 28,000. Computer his exempted and taxable gratuity FOF Mion 11 5BAC) not covered under Gratuity Act). (Ignore Alternative Tax Regime u” Solution: wo mented © Scanned with OKEN Scannerition - 19 Mr. Arup Mukherjee (resident), a manager of a Limited Co., retires on 1-6-2020 after putting 40 jears of continuous service. He received a gratuity of & 1,00,000 in August 2019. His salary for the year 2019-20 was 4,000 p.m, and 2020-21 ¥ 6,000 p.m. Calculate his taxable gratuity for the A.Y. 2021-22. (Ignore Alternative Tax Regime under Section 115BAC) solution: (© Scanned with OKEN ScannerIilustration - 20 Sri. Eshwar Mullick, who is not covered by the Payment of Gratuity Act receives gratuity of onths and 23 days. His last £3,88,000 when he retires on 23/06/2020, after a service on 34 years 9 mi m., DA 6,600 p.m, Servant Allowance % 600 drawn emoluments are as follows: Basic Salary € 25,000 p. pm. Annual increment of Basic Salary & 1,000 pm falls due on 1st January-of every. year. Compute taxable amount of Gratuity for the A.Y. 2021-22. (Ignore Alternative Tax Regime) © Scanned with OKEN ScannerIllustration - 21 : ; 8 Sri. Neelakanta Maity, the Marketing Manager of Archita Ltd. retires on 30-11-2020 after service gf 22 years and 10 months. At the time of retirement he has been paid ® 2,80,000 as gratuity. Find out taxable gratuity for A.Y. 2021-22 with the following available information. Salary and allowances: a, Basic salary at the time of retirement %8,000 pm, b. Month from which increment is allowed - From the salary payable for the month of July, c. Amount of last increment ¥ 1,000, d. DA (15% is retiretnent benetit)-2-000 p.m €- commission (Fixed on per month basis since 2003% Besides, he gets 0.5% commission on turn over achieved by him. Turnover for different month is as follows: Jan. 20202 70,000; February ¢ 80,000; March @ 85,000; April to June 2,70,000; July to Oct € 3,70,000; Nov % 95,000, Salary, allowances and commission become due on ist day of the next month. (Ignore Alternative Tax Reaime under Section 115BAC) (© Scanned with OKEN Scanner.d on 15.7.2020 after 19 years and 11 months. Hilustration - 23 Sri. Nagesh isa sales assistant, with A Ltd. He He got gratuity of € 1,20,000. In 2019, he was getting ¢ 8,000 p.m. Basic pay, which was increased to € ‘One half of the DA Is part of superannuation benefits. He n 2019 amount of sales was® 2,40,000__ 8,500 p.m. in 2020. He gets DA at ¢ 3,000 p. is entitled to commission at € 2% on the sales achieved by hi ‘ind out taxable amount of gratuity. and during first six months of 2020, itis © Scanned with OKEN Scanner