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Payment of gratuity act 1972 read with it act 1961

Tax queries 1157 views 3 replies

Dear Friends,

This topic is regarding Gratuity u/s 10(10) of Income Tax Act 1961

(INCOME WHICH DO NOT FORM PART OF TOTAL INCOME)

Can anybody tell me the difference between

NON-GOVT EMPLOYEES COVERED BY PAYMENT OF GRATUITY ACT 1972

AND

NON-G0VT EMPLOYEES NOT COVERED BY PAYMENT OF GRATUITY ACT 1972

Thanks in advance

Replies (3)
Covered in gratuity Act means only those types of Non Govt. employees which are enlisted in Gratuity Act and not all Non Govt Employees.

Agree!!

 

For further clarifying..

 

It is applicable to Any organisation whether it is a factory or a shop or a commercial establishment or mine oe railway, a private limited company or a public limited company where 10 or more people are working. Once the employee strength reaches 10, the Act becomes applicable and even after that if employee number reduced to less than 10, it remains applicable. Earlier, it was not applicable to teachers but after amendment to section 2(e) of the Act, it has defined as it includes any person, employed to do any kind of work. So there is no confusion. Irrespective of the nature of the work and organisation, The  Payment of Gratuity Act is applicable to all organisation employing 10 or more people.

 

So all such employees are covered employees!!

 

& remaining are non covered!!

https://ca-lectures.com/articles/gratuity-calculation-formula-in-india-2013/

 

check out this link . It'll further clear your doubts


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