Nathrao
Insolvency N Gst Professional

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Anonymous
The employees who have completed their services with the organisation and attained the age of superannuation, at the time their superannuation they have also received the Gratuity up to maximum ceiling, i.e. Rs 20Lacs.
Again after completion of his services they again join as re-employmed anywhere as remployed and there complete their 5 years , in this situation would they entitle to get Gratutity from that employerrece.
If Yes, kindly explain under which provision of the Gratuity Act or any decesion given by the Supereme Court of India ,Kindly help me,please.

From India, Ghaziabad
The employees who have completed their services with the organisation and attained the age of superannuation, at the time their superannuation they have also received the Gratuity up to maximum ceiling, i.e. Rs 20Lacs.
Again after completion of his services they again join as re-employmed anywhere as remployed and there complete their 5 years , in this situation would they entitle to get Gratutity from that employerrece.
If Yes, kindly explain under which provision of the Gratuity Act or any decesion given by the Supereme Court of India ,Kindly help me,please.

From India, Ghaziabad
The maximum tax free gratuity is Rs20 Lakhs.
So in next organisation he works five years and draws gratuity he will have to pay tax on full amount.
For employees covered under the Act
There is a formula using which the amount of gratuity payable is calculated. The formula is based on the 15 days of last drawn salary for each completed year of service or part of thereof in excess of six months.
The formula is as follows:
(15 X last drawn salary X tenure of working) divided by 26
For employees not covered under the Act
There is no law that restricts an employer from paying gratuity to his employees even if the organisation is not covered under the Act.
The amount of gratuity payable to the employee can be calculated based on half month's salary for each completed year. Here also salary is inclusive of basic, dearness allowance, and commission based on sales.
The formula is as follows:
(15 X last drawn salary X tenure of working/30)
I hope it is clear.

From India, Pune
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