AAFM Exam GLO_CWM_LVL_1 Topic 4 Question 64 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 64
Topic #: 4

What is the exemption criteria U/S 10(10) (ii) of the IT Act, 1961 for any gratuity received by a seasonal employee?

AExemption limit is least of there:
(i) 7 day's wages (calculated as 26 working days in a month) based on last drawn salary for every number of seasons worked,
(ii) Rs. 3,50,000/-,
(iii) Actual gratuity received

BExemption limit is least of three:
(i) 7 day's wages based on last drawn salary for every number of seasons worked,
(ii) Rs. 3,00,000/-,
(iii) Actual gratuity received

CExemption limit is least of three:
(i) 15 day's wages based on last drawn salary for every completed year
(ii) Rs. 3,50,000/-,
(iii) Actual gratuity received

DExemption limit is least of three:
(i) 15 day's wages based on last drawn salary for every completed year
(ii) Rs. 4,00,000/-,
(iii) Actual gratuity received

Show Suggested Answer

Suggested Answer: B

by Allene at Jul 28, 2023, 11:44 AM

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Raymon

1 months ago

Ah, the old 'gratuity for seasonal employees' conundrum. I feel like this question is trying to trick us. Option B seems legit though.

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2 months ago

Wait, what? Gratuity for a seasonal employee? I thought they didn't get any benefits. This is a tricky one!

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Ernestine

5 days ago

C) Exemption limit is least of three: (i) 15 day's wages based on last drawn salary for every completed year (ii) Rs. 3,50,000/-, (iii) Actual gratuity received

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Tijuana

8 days ago

B) Exemption limit is least of three: (i) 7 day's wages based on last drawn salary for every number of seasons worked, (ii) Rs. 3,00,000/-, (iii) Actual gratuity received

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Judy

14 days ago

A) Exemption limit is least of there: (i) 7 day's wages (calculated as 26 working days in a month) based on last drawn salary for every number of seasons worked, (ii) Rs. 3,50,000/-, (iii) Actual gratuity received

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3 months ago

I think the exemption criteria is least of 7 day's wages, Rs. 3,50,000, or actual gratuity received.

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