In your question it is not clear whether the number of employees at the time of being proprietory firm was less than ten. The Payment of Gratuity Act shall apply to a factory / mine/shop/establishment etc. where ten or more persons are / were employed. If at the time of being propritory firm the company was having total number of empoloyees less than ten and after conversion to Privet ltd company the total strength becomes ten or more than ten, Gratuity Act be applicable from then only and not before.
Rgds,
Debrishi
From India, Mumbai
Rgds,
Debrishi
From India, Mumbai
Thanks Debrishi..
You have raised a very valid point.. Now the propreitary firm had more than 10 employees, but were employed as consultants.. No PF, Gratuity.. Only TDS deduction..
What would be the impact in this case?
From India, Bangalore
1You have raised a very valid point.. Now the propreitary firm had more than 10 employees, but were employed as consultants.. No PF, Gratuity.. Only TDS deduction..
What would be the impact in this case?
From India, Bangalore
Certainly the Payment of Gratuity Act may be applicable to such companies which employed at least 10 persons during any day of the year. But this may not mean that since that date the employees service shall be calculated. Therefore if an employee has been in continuous service in an employment which has not been interrupted due to change in management should be deemed to have it to his credit when time comes to calculate his gratuity.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Five years of active service is necessary for gratuity. The employee should work 240 days continueously in a year. I want information on deduction of Income tax from the gratuity amount. can anybody give information on this?
From India, Hubli
From India, Hubli
Dear Manjula,
No income tax is to be deducted if the payment of gratuity is made as per the requirement of the Payment of Gratuity Act, 1972.
With Regards,
R.N.Khola
From India, Delhi
No income tax is to be deducted if the payment of gratuity is made as per the requirement of the Payment of Gratuity Act, 1972.
With Regards,
R.N.Khola
From India, Delhi
Dear Mr. R.N. Khola,
Sir as this thread is regarding gratuity act.i have some query regarding that--
1-Gratuity amount,payable to an employee is Taxable or non taxable ?
2- What are the cases when an employer can get exemption from this act (Payment of gratuity act) please give some example also.
Regards,
Bandini
From India, Delhi
Sir as this thread is regarding gratuity act.i have some query regarding that--
1-Gratuity amount,payable to an employee is Taxable or non taxable ?
2- What are the cases when an employer can get exemption from this act (Payment of gratuity act) please give some example also.
Regards,
Bandini
From India, Delhi
Dear Bandini,
1. According to the clarification made by the members income tax is not to be deducted on the gratuity amount received up to Rs.3.5 lacs.
2.Plz go through section 5 of this Act to have exemption from this Act. Govt. of Haryana have given exemption form the operation of P G Act, 1972 to Haryana State Electricity Board in the year 2006/07.
With Regards,
R.N.Khola
From India, Delhi
1. According to the clarification made by the members income tax is not to be deducted on the gratuity amount received up to Rs.3.5 lacs.
2.Plz go through section 5 of this Act to have exemption from this Act. Govt. of Haryana have given exemption form the operation of P G Act, 1972 to Haryana State Electricity Board in the year 2006/07.
With Regards,
R.N.Khola
From India, Delhi
Dear All,
Need urgent assistance.
As per my knowledge an employee is entitled for gratuity on completion of 5 years of service. I recently (April 15, 2010) resigned from my company with whom I was employed from July 2003. At the time of joining, the company was a proprietary firm which received a VC funding in December 2005. I started to receive EPF in 2006. Now when contacted the company for Gratuity payment - they have reverted that gratuity will be calculated from the time EPF was being deducted - in that case I do not become eligible to claim my gratuity. The company has approximately 50 employees currently.
Is this true - as i have been looking up the labour laws but couldn't find a clause that gratuity is linked to EPF. It would be great if someone can provide me with some direction on this matter - as i do not have any sources who can help with this.
I look forward to a response. Thank you in advance.
Regards
Kooleo
From India, Mumbai
Need urgent assistance.
As per my knowledge an employee is entitled for gratuity on completion of 5 years of service. I recently (April 15, 2010) resigned from my company with whom I was employed from July 2003. At the time of joining, the company was a proprietary firm which received a VC funding in December 2005. I started to receive EPF in 2006. Now when contacted the company for Gratuity payment - they have reverted that gratuity will be calculated from the time EPF was being deducted - in that case I do not become eligible to claim my gratuity. The company has approximately 50 employees currently.
Is this true - as i have been looking up the labour laws but couldn't find a clause that gratuity is linked to EPF. It would be great if someone can provide me with some direction on this matter - as i do not have any sources who can help with this.
I look forward to a response. Thank you in advance.
Regards
Kooleo
From India, Mumbai
Dear Member,
Welcome to CiteHR.
If this concern is covered under the Payment of Gratuity Act, 1972 then plz go through section 4 for calculation of gratuity for the employees.
R.N.Khola
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From India, Delhi
Welcome to CiteHR.
If this concern is covered under the Payment of Gratuity Act, 1972 then plz go through section 4 for calculation of gratuity for the employees.
R.N.Khola
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[COLOR=#3366ff][FONT=Verdana]
From India, Delhi
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc