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
- Supply through E-commerce Operators
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- TAN for Partnership
- Relief u/s Section 89
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- E way bill for tractors
- Specified Profession
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
