Please let me know , the maximum amount payable under latest amended gratuity act, and from which it is applicable or in force.
From India, Surat
From India, Surat
dear there is no amendment in act and still maximum limit is 3.5 lacs only. regards js malik
From India, Delhi
167From India, Delhi
what is the present status of the proposal for IT exemption of gratuity from 3.5 lakhs to 10 lakhs?
From India, Madras
From India, Madras
Hi
Mr. Anurag Jain
The Govt. of India had only made a proposal for increasing the present sum of 3.5 lakhs to 10 laksh, but not yet any notification or an enactment/ amendment had been done. So as on date the Gratuity limit is 3.5 Lakhs only as Mr. Malik had said.
Mohan Rao
Manager HR
From India, Visakhapatnam
Mr. Anurag Jain
The Govt. of India had only made a proposal for increasing the present sum of 3.5 lakhs to 10 laksh, but not yet any notification or an enactment/ amendment had been done. So as on date the Gratuity limit is 3.5 Lakhs only as Mr. Malik had said.
Mohan Rao
Manager HR
From India, Visakhapatnam
As per 6th pay commission notification gratuity limit has been increased from 3.5 lakhs to 10 lakhs subject to eligibility whichever is less. This is restrospectively effective from 1.1.2006 for Central Govt. Employees and from 1.1.2007 for the PSU employees. The proposal is for increasing the exemption limit for Income Tax Exemption under Section 10(10) of Income tax Act which according to me is still pending. If any employee wishes to take the gratuity as per 6th pay commission, he/she can avail of the same after paying income tax which can be claimed back after the proposal is approved by Finance Ministry for IT Exemption. So as of now the Gratuity payable is Rs. 10 lakhs subject to eligible amount or 10 lakhs whichever is less.
From India, Madras
From India, Madras
Hi Sushi, Can you provide the notification of Govt for increasing the ceiling for private sectors?
From India, Lucknow
From India, Lucknow
Dear Folks, As there are many discussions on this thread can any one finalise what is max amount to paid as gratuity and current tax exemption???? awaiting for your replies....... Jai
From India, Hyderabad
From India, Hyderabad
Dear All,
In my opinion, there is no limit on payment of gratuity. It is payable on the basis of last drawn basic salary but as a practice the payment is limited to Rs. 3.5 lacs which is the limit of exemption under the income tax act.
The actual amount due on the basis if half months salary for each completed year of service can be paid even if it exceeds RS. 3.5 lacs and the receipient would have to pay tax on the excess amount.
Hope the seniors would also agree with my opinion.
Kindly correct me if I am wrong.
Thanks & Regards,
Avika
From India, New Delhi
In my opinion, there is no limit on payment of gratuity. It is payable on the basis of last drawn basic salary but as a practice the payment is limited to Rs. 3.5 lacs which is the limit of exemption under the income tax act.
The actual amount due on the basis if half months salary for each completed year of service can be paid even if it exceeds RS. 3.5 lacs and the receipient would have to pay tax on the excess amount.
Hope the seniors would also agree with my opinion.
Kindly correct me if I am wrong.
Thanks & Regards,
Avika
From India, New Delhi
Mr. Avika
Let me correct you the gratuity payable per year of service is 15 days of last paid salary i.e. Total last paid salary / 26 days X 15 days = per year gratuity. If we take in percentage of salary it comes to 57.69% , it is not half month salary as you said above. For the rest I do agree with you. If I am wrong please correct me.
Mohan Rao
From India, Visakhapatnam
Let me correct you the gratuity payable per year of service is 15 days of last paid salary i.e. Total last paid salary / 26 days X 15 days = per year gratuity. If we take in percentage of salary it comes to 57.69% , it is not half month salary as you said above. For the rest I do agree with you. If I am wrong please correct me.
Mohan Rao
From India, Visakhapatnam
Mr.Avik,
As per payment of gratuity act 1972, Section 4 (3),
3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand] rupees.
However, there is a proposal to increase the amount to 10.00 Lacs with I.T.exemption, pending with Govt. However, this limit has already been increased to 10.00 Lacs for only central govt employees.
Yes, some great companies are paying the gratuity without any ceiling.
From India, Lucknow
As per payment of gratuity act 1972, Section 4 (3),
3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand] rupees.
However, there is a proposal to increase the amount to 10.00 Lacs with I.T.exemption, pending with Govt. However, this limit has already been increased to 10.00 Lacs for only central govt employees.
Yes, some great companies are paying the gratuity without any ceiling.
From India, Lucknow
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