A warm greetings to you all, out there!
Can any of you, please update us what is the current limit of Gratuity?
I have seen somewhere that, it is, now 30 Lakh from 20 Lakh.
Would appreciate to clear the doubts.
From India, Gurgaon
Can any of you, please update us what is the current limit of Gratuity?
I have seen somewhere that, it is, now 30 Lakh from 20 Lakh.
Would appreciate to clear the doubts.
From India, Gurgaon
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
4242From India, Kannur
Hi Madhu Ji, I appreciate your revert,
I was going through an article which read, quote " 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 hiked to Rs.30 lakh from Rs.20 lakh. Last year, in the month of March, the government had increased the limit for tax-free gratuity to Rs.20 lakh in the private sectors. Earlier, this limit was Rs.10 lakh.
After 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. The employees who have completed a tenure of at least 5 years in an organisation will be eligible for the benefits under the Payment of Gratuity Act, 1972. However, the organisation will be required to have a workforce of at least 10 employees or more to be eligible for the benefits." unquote, If you could please give us clarity on this, as you said in your earlier post that it is still 20 Lac whereas it is stated 30 Lac in the article.
(https://www.bankbazaar.com/tax/gratuity.html)
From India, Gurgaon
I was going through an article which read, quote " 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 hiked to Rs.30 lakh from Rs.20 lakh. Last year, in the month of March, the government had increased the limit for tax-free gratuity to Rs.20 lakh in the private sectors. Earlier, this limit was Rs.10 lakh.
After 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. The employees who have completed a tenure of at least 5 years in an organisation will be eligible for the benefits under the Payment of Gratuity Act, 1972. However, the organisation will be required to have a workforce of at least 10 employees or more to be eligible for the benefits." unquote, If you could please give us clarity on this, as you said in your earlier post that it is still 20 Lac whereas it is stated 30 Lac in the article.
(https://www.bankbazaar.com/tax/gratuity.html)
From India, Gurgaon
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
From India, Kannur
Mr.Madhu
https://www.businesstoday.in/budget-...ry/315931.html
https://timesofindia.indiatimes.com/...w/67788567.cms
Not sure of the above. Will it get confirmed during the forthcoming Regular Budget?
From India, Madras
https://www.businesstoday.in/budget-...ry/315931.html
https://timesofindia.indiatimes.com/...w/67788567.cms
Not sure of the above. Will it get confirmed during the forthcoming Regular Budget?
From India, Madras
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Gratuity Limit.jpg
Gratuity AM-02-Limit to Rs. 20 L-29-03-2018.pd f