Income From Salary

Illustration $8$

Mr$.$ Eswaran retired on $12$ th February $2023$ after $27$ years and $11$ months of service. During the calendar year $2022,$ his monthly pay was $10,000$ along with D$.$A$.40\%,$ commission $2,000$ and entertainment allowance $1,000.$ With effect from January $2023$ basic salary was increased to $12,000$ with D$.$A$.50\%,$ entertainment allowance $2,000.$ He was entitled to get $10\%$ commission on sales target. The sales target achieved by him during the last $10$ months preceding the retirement amounted to $75,000.$

Gratuity received on retirement $3,45,000.$

Compute taxable amount of gratuity if he is:

a$)$ Covered under Gratuity Act of $1972$;

b$)$ Not covered under the Gratuity Act of $1972$;

c$)$ Government employee.