A warm greeting to you all out there!
Can any of you please update us on what the current limit of Gratuity is? I have seen somewhere that it is now 30 lakh from 20 lakh. Would appreciate it if you could help clear any doubts.
From India, Gurgaon
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Can any of you please update us on what the current limit of Gratuity is? I have seen somewhere that it is now 30 lakh from 20 lakh. Would appreciate it if you could help clear any doubts.
From India, Gurgaon
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It is still Rs 20 lakhs. However any amount in excess of 20 lakhs can be paid but the additional amount will be taxable.
From India, Kannur
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4771From India, Kannur
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Hi Madhu Ji,
I appreciate your response. I was reading an article that stated, "The interim budget for 2019 was announced on 1 February 2019 by the interim Finance Minister Piyush Goyal. In the budget speech, Goyal announced that the gratuity limit will be increased to Rs. 30 lakh from Rs. 20 lakh. Last year, in March, the government had raised the limit for tax-free gratuity to Rs. 20 lakh in the private sector, up from Rs. 10 lakh. Following the implementation of the 7th Central Pay Commission, the upper limit for central government employees was raised to Rs. 20 lakh from Rs. 10 lakh. Employees who have completed a tenure of at least 5 years in an organization will be eligible for benefits under the Payment of Gratuity Act, 1972. However, the organization must have a workforce of at least 10 employees to qualify for these benefits."
Could you please provide clarity on this matter? In your previous post, you mentioned the limit was still Rs. 20 lakh, while the article states it as Rs. 30 lakh.
(https://www.bankbazaar.com/tax/gratuity.html)
From India, Gurgaon
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I appreciate your response. I was reading an article that stated, "The interim budget for 2019 was announced on 1 February 2019 by the interim Finance Minister Piyush Goyal. In the budget speech, Goyal announced that the gratuity limit will be increased to Rs. 30 lakh from Rs. 20 lakh. Last year, in March, the government had raised the limit for tax-free gratuity to Rs. 20 lakh in the private sector, up from Rs. 10 lakh. Following the implementation of the 7th Central Pay Commission, the upper limit for central government employees was raised to Rs. 20 lakh from Rs. 10 lakh. Employees who have completed a tenure of at least 5 years in an organization will be eligible for benefits under the Payment of Gratuity Act, 1972. However, the organization must have a workforce of at least 10 employees to qualify for these benefits."
Could you please provide clarity on this matter? In your previous post, you mentioned the limit was still Rs. 20 lakh, while the article states it as Rs. 30 lakh.
(https://www.bankbazaar.com/tax/gratuity.html)
From India, Gurgaon
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There was a confusion about this during the budget session. It was a wrong press release. The gratuity limit as per Payment of Gratuity Act is still Rs 20 lakhs only.
From India, Kannur
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From India, Kannur
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Mr. Madhu
https://www.businesstoday.in/budget-...ry/315931.html
https://timesofindia.indiatimes.com/...w/67788567.cms
Not sure about the above. Will it get confirmed during the forthcoming Regular Budget?
From India, Madras
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https://www.businesstoday.in/budget-...ry/315931.html
https://timesofindia.indiatimes.com/...w/67788567.cms
Not sure about the above. Will it get confirmed during the forthcoming Regular Budget?
From India, Madras
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