29th June 2018 From India, Kannur
Yes, keeping in mind the above situation the employee is entitled for the gratuity. Also, you can ask for the notice period or in lieu of notice period payment from the employee in case the same clause is available in your appointment letter.
30th June 2018
Company-A was taken over by Company-B in June 2015 under an Operation, Management & Maintenance Agreement (OMMA) alongwith the Plant & Machinery; and the Employees under a Dual Employment Agreement (DEA).
01 DEA Employee aged 51+ Years has now been inducted into Company-B w.e.f. 01/05/2018, after having Resigned both from Company-A and DEA on 30/04/2018.
This employee has a Total reckonable Service of 29 Years.....[Company-A : 26 Yrs + Company-B : 03 Yrs].
Now, Company-B wants wants to settle the Full & Final for the period prior to May-18; an has calculated the Gratuity amount for a Total of 29 Years Service amounting to approx. INR 12.00 Lakhs......[Company-A : Rs. 10.50 L + Company-B : Rs. 10.25 L].
Please Clarify if TDS @ 31.2% is liable to be deducted on the Gratuity amount if :
1. Company-B pays the entire Gratuity for 29 Yrs service period; or
2. Company-B pays their share of Gratuity for 03 Years service under the DEA; or
3. Company-A pays their share of Gratuity for 26 Years of service rendered with them.
The Accounts Deptt. at Company-B is treating the Gratuity component of the Full & Final Payment [including Earned Leave (EL) Encashment + Bonus for the last FY 2017-18 and upto Apr-18 this FY] as any other Salary component while clearing the payment thereof.
26th July 2018 From India, Khargone
Though the matter already very well explained by Mr Madhu and Mr Manoj, however, pls find attached notification in case you need to show the same as documentary evidence:-
1 Enhancement of Tax free Gratuity amount upto Rs. 20 Lakh. The employer can pay over and above the limit, that only will attrat TDS. Upto Rs. 20 lakh TDS is not applicable.
2 For the purpose of calculating the Gratuity period in case of a female employee “Twenty Six” weeks period will be countable as Service Period.
26th July 2018 From India, Delhi