Advocate Prabhanshu Shukla

Questions Answered by Advocate Prabhanshu Shukla

Q: Is gratuity payment of 9 years taxable

I am working with a "X" company as Senior Manager since last 7 years. The "X" transfers me to company "Y" with all my superannuation benefits. Both the companies are owned by same Directors. "X" is 15 years old company while "Y" is a newly incorporated company. I worked in company "Y" for 2 years and then left after 9 years. Will my Gratuity Payment of 9 years taxable? If no, Why? If yes, Why?

Advocate Prabhanshu Shukla answered
Dear Client,1) There are two types of Employee- (i) Employee Covered under Payment of Gratuity Act, 1972 (ii) Employee not covered under Payment of Gratuity Act, 1972.2) If you are covered under Payment of Gratuity Act then you will get exemption only when following conditions are met: (i) Statutory limit of Rs 10 lakh. (Maximum limit / Govt notified amount) (ii) Last drawn salary * 15/26 * No. of completed years of service (iii) Actual Gratuity received by you. If the gratuity exceeds these limits, then it becomes taxable. 3) If you are not covered under Payment of Gratuity Act then you will get exemption only when following conditions are met: (i) Statutory limit of Rs.10 lakhs. (ii) Gratuity = Average salary x ½ x No. of years of service. (iii)Actual gratuity received by you.4) Completion of five years with company is necessary in order to receive gratuity benefits. In case of company "X", you are entitled to receive. But in case of company "y" you may not be entitled. Therefore in order to receive gratuity from company "y", you will have to prove that company "x" and "y" are same legal entity.All the Best!

Q: Can I claim my money legally if I gave loan in cash against affidavit

If, I gave loan of 5lac in cash against affidavit mentioning the repayment within 3 months through chq. Can I go for legal action on basis of affidavit, if borrower do not pay ..

Advocate Prabhanshu Shukla answered
Yes, you can claim for loan on the basis of affidavit if borrower doesn't pay your loan. 1) A loan agreement is like any other contract. Thus the provisions of Indian Contract Act will be attracted for enforcing the contract. 2) If affidavit mentions any time limit within which you can file claim then you must adhere to that time limit. If no time limit is mentioned then you have to claim within reasonable time limit. In either of case, time limit cannot exceed 3 years under the Limitation Act.3) kindly ensure that you must not breach any of the terms mentioned in the affidavit and become a breaching party. If this happens the other party may claim fraud or any other wrong doing on your part.