Hi,

I like to know about the following queries

1. how to calculate the tax liability on gratuity received by an government employee

2. Leave salary is taxable or not in case of government as well as private employee

please reply the answers for the above questions to rupali_sharma@gmail.com

Dear Rupali,
Gratuity liability of an government employee is no different from the gratuity liability of private sector employee.

Calculate your gratuity amount as follows

Your gratuity amount = (Last Drawn Basic Salary + Dearness Allowance) x 15/26 x no. of years of completed service

1. If you have completed 4.8 years but less than 5 years, it can be rounded off to 5 years.
2. For every year after 5 years of completion, .5 is rounded to one. For example 5.5 years is 6 years but 5.4 years is 5 years only.