03 June 2010
As per amendment in gratuity act, limit of gratuity is enhanced upto 10 lacs. But it is not clear, that this amendment is retrospective or will applicable on gratuity received after 24th May 2010.
To be frank there is lot of confusion on this issue, however to the best of my knowledge & R&D done by me, the view is as follow: There were two amendment in the Gratuity Act 1972 recently. First in Augst 2009 which is effective from 1.1.06 for central govt. employees and the second amendment was passed by both the houses on 5.5.2010 and is applicable from 24.5.2010 for private sector employees that includes banking, insurance sector and all the PSUs employees. This discrimination has been the root cause of resentment amonst the retirees who retd after 1.1.06. Lets then unite and fight for our lawful rights.
For further info please go this link: http://www.taxguru.in/general-info/payment-of-gratuity-amendment-act-2009-amendment-in-section-2-and-insertion-of-section-13a.html#ixzz0pnFe5ZVS
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