Dear Mr.Abbas in your post above referred to you are referring to "6(3)" and also Section 4(3). What does "6(3)" stand for. Will you be kind enough to enlighten.
In the post referred above you say that the maximum amount of gratuity shall not exceed twenty months. In another post you say that the maximum amount of gratuity is Rupees ten lakhs. As you seem to have gone through the Payment of Gratuity fully will you please enlighten as to how to reconcile the two provisions quoted by you. If you are kind enough to give some decided cases on this issue it will be helpful to all.
With regards.
From India, Madras
169In the post referred above you say that the maximum amount of gratuity shall not exceed twenty months. In another post you say that the maximum amount of gratuity is Rupees ten lakhs. As you seem to have gone through the Payment of Gratuity fully will you please enlighten as to how to reconcile the two provisions quoted by you. If you are kind enough to give some decided cases on this issue it will be helpful to all.
With regards.
From India, Madras
Dear Mr. Harikrishnan,
First of all you kindly go through Form U. Then your doubts on 6(3) and 4(3) will be cleared. 6(3) the clause of the form and rest is quotation of that clause.
I have no doubt that the ceiling amount of gratuity is Rs. 10,00,000. But it was not hiked from 'twenty months salary', but Rs. 3,50,000. The original query was that is there any ceiling regarding monthly salary viz. 16.5 times. Accordingly I have quoted what I saw in Form U.
I didn't claim that I gone completely thr' the Act. But I am sure that you missed Form U. Without form U, the Act will not be completed.
Even though there is ceiling limits, employer can give higher amount. But normally the provision 10(10) of Income Tax rule will allow the tax exemption upto Rs. 10,00,000.
Abbas.P.S
From India, Bangalore
First of all you kindly go through Form U. Then your doubts on 6(3) and 4(3) will be cleared. 6(3) the clause of the form and rest is quotation of that clause.
I have no doubt that the ceiling amount of gratuity is Rs. 10,00,000. But it was not hiked from 'twenty months salary', but Rs. 3,50,000. The original query was that is there any ceiling regarding monthly salary viz. 16.5 times. Accordingly I have quoted what I saw in Form U.
I didn't claim that I gone completely thr' the Act. But I am sure that you missed Form U. Without form U, the Act will not be completed.
Even though there is ceiling limits, employer can give higher amount. But normally the provision 10(10) of Income Tax rule will allow the tax exemption upto Rs. 10,00,000.
Abbas.P.S
From India, Bangalore
Dear Mr.Abbas
There is a variation between Section 4(3) and the Form U quoted by you. Will you please help me to reconcile the variations. Which will prevail whether Rs.10,00,000 as the maximum amount of gratuity or the contents of Form U quoted by you. In other words whether the monetary limit fixed by the Payment of Gratuity Act will prevail or whether the months salary limit indicated in Form U will prevail. I have consulted some senior lawyers on this issue. They are unanimous in their view that the Act will prevail over the Rules and as Form U is part of the Rule the provisions of the Act will prevail over Form U. Anyhow I would very much like to take your considered view on this issue.
With regards
From India, Madras
There is a variation between Section 4(3) and the Form U quoted by you. Will you please help me to reconcile the variations. Which will prevail whether Rs.10,00,000 as the maximum amount of gratuity or the contents of Form U quoted by you. In other words whether the monetary limit fixed by the Payment of Gratuity Act will prevail or whether the months salary limit indicated in Form U will prevail. I have consulted some senior lawyers on this issue. They are unanimous in their view that the Act will prevail over the Rules and as Form U is part of the Rule the provisions of the Act will prevail over Form U. Anyhow I would very much like to take your considered view on this issue.
With regards
From India, Madras
Hi,
Its true, initially gratuity act 1972 provide the ceiling of twenty month’s wages for payment of gratuity which was replaced by a monetary ceiling of Rs.50,000/- through The amendments w.e.f. 1.10.1987.
which is enhanced to Rs. one lakh through amendment came into force w.e.f. 24.5.1994 which was further enhanced by the Payment of Gratuity (Amendment) Act, 1998 from Rs. one lakh to Rs.3.50 lakh with effect from 24.9.1997.
presently through- Payment of Gratuity (Amendment) in , 2010 gratuity ceiling enhanced from Rs. 3.5 lakh, to Rs. 10 lakh.
thanks
From India, Kolkata
Its true, initially gratuity act 1972 provide the ceiling of twenty month’s wages for payment of gratuity which was replaced by a monetary ceiling of Rs.50,000/- through The amendments w.e.f. 1.10.1987.
which is enhanced to Rs. one lakh through amendment came into force w.e.f. 24.5.1994 which was further enhanced by the Payment of Gratuity (Amendment) Act, 1998 from Rs. one lakh to Rs.3.50 lakh with effect from 24.9.1997.
presently through- Payment of Gratuity (Amendment) in , 2010 gratuity ceiling enhanced from Rs. 3.5 lakh, to Rs. 10 lakh.
thanks
From India, Kolkata
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc