Gratuity limit enhancement applicability

Ms.Varalakshmi

and

Mr.Rmesh C.s.

The enhanced ceiling limit of Rs.10,00,000/- is only applicable for the gratuity received u/s 10(10)(ii) of Income-tax act, 1921 received on or after 24-05-2010 but not for the enitire previous year i.e. 1-4-2010 to 31-03-2011 relevant to the assessment year 2011-12 for the reason the amendment made to payment of grautiy act has come into force only on 24-05-2010 as per the gazette notification of the central governemnt.

I am hereuder reproducing the gazette notification.

GAZETTE OF INDIA

Extraordinary, Part II Section 3 (ii)

Ministry of Labour & Employment

Notification

New Delhi,dated 24th May 2010

S.O. 1217 (E) : In exercise of the powers conferred by sub-section (2) of Section 1 of the The Payment of Gratuity (Amendment) Act, 2010 (15 of 2010), the Central Government hereby appoints the 24th day of May, 2010, as the date on which the said Act shall come into force.

(F.No.S-42012/1/2008 – SS.ii (Vol.II)

S.K.Srivastava, Additional Secretary

GAZETTE OF INDIA

Extraordinary, Part II Section 1

Ministry of Law & Justice, (Legislative Department)

New Delhi,dated 18th May 2010

The following Act of Parliament received the assent of the President on the 17th May 2010, and is hereby published for general information: -

THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010

(NO. 15 OF 2010)

(17th May 2010)

An Act further to amend the Payment of Gratuity Act, 1972.

BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:-

1. (1) This Act may be called the Payment of Gratuity (Amendment) Act, 2010

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2. In Section 4 of the Payment of Gratuity Act, 1972, in sub-section (3), for the words "Three Lakhs and fifty thousand rupees", the words "Ten Lakhs" shall be substituted.

V.K. BHASIN

Secretary to Government of India

Best Wishes

Sathikonda