Mr. X was employed in ABC Ltd. getting basic pay ₹ 18,000 p.m. but it was increased to ₹ 24,000 p.m. w.e.f. 01 -07-2020, dearness allowance ₹ 6,000 p.m. but it was increased to ₹ 9,000 p.m. w.e.f. 01-07-2020 (50% of DA forms part of salary). The employee was retired on 10.01.2021 after serving the employer for 20 years and 10 months. The employer has paid him gratuity of ₹ 9,10,000 and the employee was covered under Payment of Gratuity Act, 1972. The taxable portion of gratuity will be:
A. ₹ 3,99,808
B. ₹ 9,10,000
C. ₹ 5,64,712
D. ₹ 5,10,192
Answer:A
Mr. X was employed in ABC Ltd. getting basic pay ₹ 18,000 p.m. but it was increased to ₹ 24,000 p.m. w.e.f. 01 -07-2020, dearness allowance ₹ 6,000 p.m. but it was increased to ₹ 9,000 p.m. w.e.f. 01-07-2020 (50% of DA forms part of salary). The employee was retired on 10.01.2021 after serving the employer for 20 years and 10 months. The employer has paid him gratuity of ₹ 9,10,000 and the employee was covered under Payment of Gratuity Act, 1972. The taxable portion of gratuity will be:
A. ₹ 3,99,808 B. ₹ 9,10,000 C. ₹ 5,64,712 D. ₹ 5,10,192