Gratuity limit
This query is : Resolved
07 February 2011
Dear Sir,
One employee is working with our organisation for 12 years. At the time of his leaving i have calculated his gratuity as 15days pay for every one year complition of service. Which comes to 11.5 Lakhs.
As per it act limit for exemption is 10 Lakh.
My question is whether employer is obligated to pay only till 10 Lakhs or as per gratuity act he has to pay 11.5 Lakhs out of which 10L will be non taxable for employee.
Thanks
Mohini
One employee is working with our organisation for 12 years. At the time of his leaving i have calculated his gratuity as 15days pay for every one year complition of service. Which comes to 11.5 Lakhs.
As per it act limit for exemption is 10 Lakh.
My question is whether employer is obligated to pay only till 10 Lakhs or as per gratuity act he has to pay 11.5 Lakhs out of which 10L will be non taxable for employee.
Thanks
Mohini
07 February 2011
Employer liability is limited to the extent of gratuity payable as per Gatuity ACt. A employer can pay any amount as an exgratia over and above the amount calculated as per Payment of Gratuity ACt. The excess amount paid to employee is taxable in the hands of the employee.
07 February 2011
Thanks Sir,
Please guide if any employer wants to restrict the amt payable to 10 Lakhs even if as per gratuity act calculation is more. Can it be possible.
Regards
Mohini
Please guide if any employer wants to restrict the amt payable to 10 Lakhs even if as per gratuity act calculation is more. Can it be possible.
Regards
Mohini
08 February 2011
Yes, Employer is bound to pay only as per Payment of Gratuity Act
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
- STCG....................................................
- Supply through E-commerce Operators
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- 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
- Taxation on LTCG for property sold after 24JUL2024
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- 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
- 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
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
