Dear Friends, in payout of Gratuity, is there a capping for max. amount that can be paid by Employer? For eg. my company has written the definition of Gratuity as follows:- "Gratuity is calculated at the rate of 15/26th of every month's Basic Salary for every completed year of service or part thereof in excess of six months, subject to a maximum of Rs.1,000,000". Please let me know whether capping of Rs.10 Lacs is correct and whether we actually have any capping or not, as per the Gratuity Act? Regards, Chandrashekhar.
From India, New Delhi
From India, New Delhi
Tax free limit for gratuity has been hiked to Rs20 lakhs.
Cabinet approves introduction of the Payment of Gratuity (Amendment) Bill, 2017 in the Parliament
Company can pay more than Rs,20 lakhs voluntarily but it will be fully taxable in hands of employee.
From India, Pune
3131Cabinet approves introduction of the Payment of Gratuity (Amendment) Bill, 2017 in the Parliament
Company can pay more than Rs,20 lakhs voluntarily but it will be fully taxable in hands of employee.
From India, Pune
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Employer-PF-res trict to wages of Rs 6500.pdf