As far as responsible people like you who believes in savings for rainy days, gratuity can be considered as long term saving which can only be utilized after you resign from the company which comes under the Payment of Gratuity Act,1971 after serving them for five or more years.Although gratuity can be claimed even before completion of 5 years in case of death or disablement.
Computation of gratuity can be done on your own or it can be done through gratuity calculator available on our website, As far computation you should understand that your service period will be rounded off to a year. So if the actual figure is 14 years and 7 months, it will be considered as 15 years.The gratuity received under the Act is tax-free to the extent that it does not exceed 15 days’ salary for every completed year of service. This is subject to a maximum of Rs 3.5 lacs. This tax-free ceiling applies to the aggregate of gratuity received from one or more employers in the same year or during different years.
As far as calculating gratuity online, which has now become easier then any other mode, all you need to input your basic salary, your total salary, total number of years you have worked for the company into the calculator and your gratuity calculation is done.
As Benjamin Franklin said “A penny saved is a penny earned”. Generally gratuity comes in lump-sum amount, and to accumulate this amount people can re-invest it to achieve their long term goals. There are multiple options available in market which is suitable for lump-sum amount investments like – fixed deposits,mutual funds etc.
Computation of gratuity can be done on your own or it can be done through gratuity calculator available on our website, As far computation you should understand that your service period will be rounded off to a year. So if the actual figure is 14 years and 7 months, it will be considered as 15 years.The gratuity received under the Act is tax-free to the extent that it does not exceed 15 days’ salary for every completed year of service. This is subject to a maximum of Rs 3.5 lacs. This tax-free ceiling applies to the aggregate of gratuity received from one or more employers in the same year or during different years.
As far as calculating gratuity online, which has now become easier then any other mode, all you need to input your basic salary, your total salary, total number of years you have worked for the company into the calculator and your gratuity calculation is done.
As Benjamin Franklin said “A penny saved is a penny earned”. Generally gratuity comes in lump-sum amount, and to accumulate this amount people can re-invest it to achieve their long term goals. There are multiple options available in market which is suitable for lump-sum amount investments like – fixed deposits,mutual funds etc.
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