18 Questions
What is the nature of Dearness Allowance (D.A.)?
Fully taxable in all cases
How is Bonus taxed according to the text?
Taxable on receipt basis
What is the calculation formula for Cost to Company (CTC)?
CTC = Gross Salary + Benefits
How is Advance salary treated in terms of taxation according to the text?
Taxable on receipt basis
Which component of salary is considered fully taxable?
Basic Salary
What happens to Leave Salary according to the text?
It can be encashed or carried forward
When is an employee eligible to receive gratuity?
After five or more years of service with a single employer
Under what conditions is an employee entitled to receive gratuity?
In case of illness or accident resulting in disability
Which type of employees are eligible for gratuity benefits?
Only permanent employees
What happens if an employer has less than 10 employees after the Gratuity Act becomes applicable to them?
Employer must pay gratuity regardless of employee count
How is the amount of gratuity determined?
Salary last drawn by the employee including dearness allowance
Why is it important for an employee to complete five years with a single employer to receive gratuity?
To ensure loyalty and long-term commitment from employees
When can gratuity received from multiple employers in different years exceed Rs. 20 lakhs?
If the total years of service with both employers is more than 10 years.
How is salary per month calculated for POGA employees?
Latest basic salary per month plus latest DA and turnover commission
What does pension refer to in relation to services rendered by an individual?
A periodic allowance based on past services provided.
How are pension funds typically accumulated for post-retirement years?
By regularly investing a specific amount until retirement during the accumulation stage.
In which scenario will a person receive a steady flow of income for life according to the text?
Upon reaching the vesting stage after retirement.
For non-POGA employees, what does the average salary per month calculation include?
Average basic salary and average DA of the last 10 months
Learn about the different components of a salary package such as basic salary, bonuses, allowances, perquisites, and retirement benefits. Explore how CTC (Cost to Company) is calculated and understand the difference between gross salary and net salary.
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