Table of Contents
Where should I invest my gratuity amount?
So your long-term money should be invested in equity or hybrid, depending on your experience. If you are likely to need this money in the next two to three years’ time for some specific goal, then put it in fixed income, a short-term bond fund only.
Which investment has both the highest potential risk and the highest potential reward?
Stocks and stock funds — Historically, these have offered the highest potential reward but tend to have the highest risk and are more appropriate for long-term investors. Bonds and bond funds — These typically present less risk than stocks but generally have less growth potential than stocks.
Can an employer pay more than 20 lakhs as gratuity?
It depends on the policy of the Employer. Legally, the employer is liable to pay a maximum of 20 lakhs. However, if the employer has a policy to pay a higher amount, it might pay more than 20 lakhs. In fact there are employers who pay more than 20 lakhs as gratuity.
Can a service receiver claim a tax exemption of Rs 10 lakh?
Under section 68 (2) service receiver are liable to pay tax not service provider. so If persons are liable to pay tax due to reverse charge ,then they (service receiver) can not claim exemption of Rs 10 Lakh, even service provider has a turnover of less than 10 Lakh . read point no 7 above.
When do I start paying service tax from Rupee one?
If in the previous financial year aggregate value of taxable services provided was more than 10 lakh but this year aggregate value of taxable services provided is less than 10 lakh them you start paying service tax from rupee one.
How many times can I claim gratuity?
Gratuity is purely a function of the number of years (minimum 5 years) an employee is in continuous service with a company. So it can be claimed any number of times, provided that he has been in the service of each of the companies for more than 5 years.