Payment of Gratuity

Hi Frnds,

As per Sec 7 of Payment of Gratuity Act 1972 says that maximum amount pf Gratuity that can be paid is Rs. 3,50,000 and also prescribes the method of calculation of gratuity to be paid.

Now if as per the method prescribed the gratuity to be paid comes out to be Rs. 4,00,000 then what amount can be paid 3,50,000 or 4,00,000?

Pls let m know what is rhe maximum amount of gratuity that can be paid by an entity to which payment of gratuity act applies?

Replies (2)

One Can pay any amount as Gratuity to its emplyee. Anything paid over and above the limit prescribed under Gratuity Act is taxable in the hands of employee.

Yes, agree with Sunil Sir,

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details