Payment of Gratuity Act, 1972
This query is : Resolved
22 March 2009
Hi! cud anyone please tell me whats the maximum amount(ceiling) of gratuity payable to an employee? Is there a ceiling of 3.5 lacs?
22 March 2009
No ceiling as far as payment is concerned. But employee who is covered under Payment of Gratuity Act,1972 exemption u/s 10(10)of The Income tax Act,1961,is limited to Rs.3.5 lakhs among the other two conditions mentioned therein.
22 March 2009
GRATUITY 10 (10) : Lumpsum amount paid by employer to employee in appreciation of past services.
AS per Gratuity act 1972It is payable if emplee has rendered service for continous period of 5 yrs .
Gratuity - In case of
1. Govt Emplyee - Fully Exempt
2. Non Govt Emplyee -
a. Covered under Payment of Gratuity Act - Least of the ollowing is Exempt
1. 350000
2. Amount Actually Recd
3. 15 / 26 * Last Drawn Salary * Completed years of Service
Completed years of Service - Eg 31.5 U should consider as 32 Yrs
SAlary = BAsic + D.A
AS per Gratuity act 1972It is payable if emplee has rendered service for continous period of 5 yrs .
Gratuity - In case of
1. Govt Emplyee - Fully Exempt
2. Non Govt Emplyee -
a. Covered under Payment of Gratuity Act - Least of the ollowing is Exempt
1. 350000
2. Amount Actually Recd
3. 15 / 26 * Last Drawn Salary * Completed years of Service
Completed years of Service - Eg 31.5 U should consider as 32 Yrs
SAlary = BAsic + D.A
22 March 2009
B. Not Covered Under Gratuity Act ---Least of the ollowing is Exempt
1. 350000
2. Amount Actually Recd
3. 15 / 30 * 10 mths Avg Salary * Completed years of Service
Completed years of Service - Eg 31.5 U should consider as 31 Yrs
SAlary = BAsic + D.A. + % of Commision
1. 350000
2. Amount Actually Recd
3. 15 / 30 * 10 mths Avg Salary * Completed years of Service
Completed years of Service - Eg 31.5 U should consider as 31 Yrs
SAlary = BAsic + D.A. + % of Commision
24 March 2009
Thanks a Lot Friends! :)
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