is there any specific that the amount payable of gratuity should not exceed the payment of 16 and half months. if an employee has completed 34 years of services. will it effect the gratuity amount as per the time regulation of the gratuity act
From India, Bangalore
From India, Bangalore
there is no limit...It will be taxed if exceed 10lkhs.. and the calculation will be basic * 15/26 * service years...
From India, Calcutta
112From India, Calcutta
There is no limitation for Gratuity payment. Till 10 lakhs we can get tax exemption. Tax is applicable over and above 10 lakhs. Ex: If a person is getting 11 lakhs as gratuity, 10 lakhs will be the tax exemtion. One lakh is taxable as per the tax slabs.
From India, Hyderabad
From India, Hyderabad
I shall quote a provision from Form-U (Abstract of the Act and Rules) of the Gratuity Act as under,
"6(3) The amount of gratuity payable to an employee shall not exceed twenty months wages.[Section 4(3)]."
Abbas.P.S
From India, Bangalore
"6(3) The amount of gratuity payable to an employee shall not exceed twenty months wages.[Section 4(3)]."
Abbas.P.S
From India, Bangalore
I shall quote a provision from Form-U (Abstract of the Act and Rules) of the Gratuity Act as under,
"6(3) The amount of gratuity payable to an employee shall not exceed twenty months wages.[Section 4(3)]".
Abbas.P.S
From India, Bangalore
"6(3) The amount of gratuity payable to an employee shall not exceed twenty months wages.[Section 4(3)]".
Abbas.P.S
From India, Bangalore
Now there is no twenty months wages. As per recent amendment the maximum amount of gratuity payable for an employee shall be Rs.10 lakhs.
From India, New Delhi
From India, New Delhi
Dear Mr.Abbas Section 4(3) of the Payment of Gratuity Act was amended in the year 2010. The maximum amount of gratuity payable is Rs.10 lakhs as pointed out by trisha_hr. With regards
From India, Madras
From India, Madras
Dear Trisha & Harikrishnan,
No doubt, the ceiling amount limit is hiked from 3.5 lakhs to 10 lakhs. But the question is whether there is any ceiling in terms of monthly wages. I have quoted the provision from Form U. Kindly go through form U.
Abbas.P.S
From India, Bangalore
No doubt, the ceiling amount limit is hiked from 3.5 lakhs to 10 lakhs. But the question is whether there is any ceiling in terms of monthly wages. I have quoted the provision from Form U. Kindly go through form U.
Abbas.P.S
From India, Bangalore
Dear Mr.Abbas
Please indicate the Rules under which the Form U you are referring to has been framed. This is because the Central Government and the various State Governments have framed rules under the Payment of Gratuity Act as both the Central Government and the State Governments are appropriate Governments under the Payment of Gratuity Ac. Moreover, the Rules, and the Forms prescribed under the Rules, are framed by either the Central Government and State Government. The amendment to the Payment of Gratuity Act was made by an Act of Parliament. It is a fundamental principle of law the Rules framed by the Government under any Act and the Forms or Registers prescribed under the Rules cannot be contrary to or at variance with the provisions of the law under which they are framed. The Form U that you are referring to if it had been prescribed under the Rules framed under the Payment of Gratuity Act and as it is at variance with the provisions of the Act, this Form, if it is still there, is invalid.
With regards
From India, Madras
Please indicate the Rules under which the Form U you are referring to has been framed. This is because the Central Government and the various State Governments have framed rules under the Payment of Gratuity Act as both the Central Government and the State Governments are appropriate Governments under the Payment of Gratuity Ac. Moreover, the Rules, and the Forms prescribed under the Rules, are framed by either the Central Government and State Government. The amendment to the Payment of Gratuity Act was made by an Act of Parliament. It is a fundamental principle of law the Rules framed by the Government under any Act and the Forms or Registers prescribed under the Rules cannot be contrary to or at variance with the provisions of the law under which they are framed. The Form U that you are referring to if it had been prescribed under the Rules framed under the Payment of Gratuity Act and as it is at variance with the provisions of the Act, this Form, if it is still there, is invalid.
With regards
From India, Madras
Dear Mr. V.Harikrishnan,
I think you didn't go thr' the Payment of Gratuity completely. Form U is part of the Act. If you feel any contrary, kindly takeup with appropriate authorities.
Even though there is ceiling limit, employer may give in excess of that. But the IT exemption will be upto Rs. 10 lakh only.
Abbas.P.S
From India, Bangalore
I think you didn't go thr' the Payment of Gratuity completely. Form U is part of the Act. If you feel any contrary, kindly takeup with appropriate authorities.
Even though there is ceiling limit, employer may give in excess of that. But the IT exemption will be upto Rs. 10 lakh only.
Abbas.P.S
From India, Bangalore
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc