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Question from raghunathanc on Dec 21 at 12:03 AM Dear All,
As you know the gratuity amount paid upto Rs. 10 lacs is exempted from income tax and our system is considering the same while computing taxable income/tax.
But the exempted amount is not fully considered while calculating the perks valuation for housing (COA & CLA)
Eg: Total income Rs. 941250 (i.e Salary Rs. 300000, Housing perks Rs. 41250, Gratuity Rs. 600000)
Scenario 1 - The taxable income considered Rs. 341250 is correct (i.e. without gratuity amount as it is exempted upto Rs. 10 lac)
Scenario 2 - While calculating the housing perquisite value the exempted amount is not fully considered, instead the salary for perquisite calculation is done on Rs. 5,50,000. {ie. Salary Rs. 3 lacs, Gratuity Rs. 2.5 lacs (Rs. 6 lacs less Rs. 3.5 lacs)}. Actually the perquisite amount is to be calculted on Rs. 3 lacs only and not on Rs. 5.5 lacs
Kindly help
Raghunathan
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