Gratuity
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 May 2012
SIR,
I PREVIOUSLY WORKED A PRIVATE LIMITED COMPANY AND I GET GRATUITY. AFTER THAT I RESIGNED JOB AND NEWLY JOINED AT ANOTHER COMPANY NOW I COMPLTED 6 YEARS CAN I ELIGIBLE TO TAKE GRATUITY AFTER RESIGNATION. MY HR SAID ALREADY ONES RECEIVED GRATUITY IN PREVIOUS COMPANY YOU ARE NOT ELIGIBLE TO TAKE PRESENT COMPANY. IS THIS CORRECT
I PREVIOUSLY WORKED A PRIVATE LIMITED COMPANY AND I GET GRATUITY. AFTER THAT I RESIGNED JOB AND NEWLY JOINED AT ANOTHER COMPANY NOW I COMPLTED 6 YEARS CAN I ELIGIBLE TO TAKE GRATUITY AFTER RESIGNATION. MY HR SAID ALREADY ONES RECEIVED GRATUITY IN PREVIOUS COMPANY YOU ARE NOT ELIGIBLE TO TAKE PRESENT COMPANY. IS THIS CORRECT
19 May 2012
There is no bar on receiving gratuity form more than one employer.
If the employee has served 3 organisations in 17 years with 5 years uninterrupted service in all three, then the emplyee can receive Gratuity from all three.
However, from Tax perspective, the exempted limit of Gratuity will keep on reducing.
if we take the example forward, assume that the tax free limit is exempted in the third service period, if the employee renders 5 years on uninteruppted service to the forth employer, he/she will be eligible for gratuity, but this time it will be taxable in the hands of employee since his/her limit is exhausted.
In summary, gratuity eligibility will be determined from the Company's policy and its taxability will be governed seperately during the life of employee.
If the employee has served 3 organisations in 17 years with 5 years uninterrupted service in all three, then the emplyee can receive Gratuity from all three.
However, from Tax perspective, the exempted limit of Gratuity will keep on reducing.
if we take the example forward, assume that the tax free limit is exempted in the third service period, if the employee renders 5 years on uninteruppted service to the forth employer, he/she will be eligible for gratuity, but this time it will be taxable in the hands of employee since his/her limit is exhausted.
In summary, gratuity eligibility will be determined from the Company's policy and its taxability will be governed seperately during the life of employee.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME
- GSTR-1A How to update Invoice
- Excess salary payment.
- 3cd- cash system of accounting is allowed?
- Provision for loans that are under Revenue Recovery
- APPLICABILITYOF GST ON STUDENT HOSTEL FEES
- Form 121-contradictory opinions
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
