Notes a) While calculating completed year of service ignore any fraction of the year (e.g. 7 years 9 months will be treated as 7 years only) b) Average Salary here means, Basic + DA' + Commission (being a fixed percentage on turnover) being last 10 months average salary, immediately preceding the month of retirement. (Eg. If an employee retires on 18/11/2018 then 10 months average salary shall be a period starting from Jan 2018 and ending on Oct 2018) * If DA is not forming a part of retirement benefit then the same shall not be included in salary for above purpose. However, DA Itself shall be fully taxable. ILLUSTRATION 3 Mr. Oldman retired from his job after 20 years 6 months and 15 days of service on 17/12/2018 and received gratuity amounting ? 4,00,000. His salary at the time of retirement was basic 6,000 p.m, dearness allowance ? 1,200 p.m. House rent alowance + 2,000, Commission on turnover 1%, Commission on profit 5,000. He got an increment on 1/4/2018 of 1,000 p.m. in Basic Turnover achieved by assessee 1,00,000 p.m. Calculate his taxable gratuity if he Is a- a) Government employee f11 b) Non-Government employee, covered by the Payment of Gratuity Act: c) Non-Government employee not covered by the Payment of Gratuity Act