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Babu AlexanderThe Ceiling Limit of Tax free Gratuity amount is upto Rs. 20 Lakh. The employer can also pay the above said limit, however any payment over and above 20 Lakh will attract TDS.
From India, Madras
The Gratuity Act does not stipulate any "Minimum Gratuity". It is 15days of wages last drawn for every completed year of service. That is the calculation to be followed. As far as Tax aspect already our Colleague had given reply.
From India, Chennai
email@example.comThe present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh.
The provisions for Central Government employees under Central Civil Services
(Pension) Rules, 1972 with regard to gratuity are also similar. Before
implementation of 7th Central Pay Commission, the ceiling under CCS (Pension)
Rules, 1972 was Rs. 10 Lakh. However, with implementation of 7th Central Pay
Commission, in case of Government servants, the ceiling has been raised to Rs. 20
From India, Hyderabad
HROneThere are certain circumstances which leds to payout of gratuity employee receives gratuity in case of any unfortunate incident that occurred. If the employee faces any unfortunate incident that may result in death or disability than the employer has to pay gratuity. Earlier the limit to gratuity was upto 10 lakh as these amount is entitled to exemption from tax. In accordance with the changes in the government's new rules the amount has been exceeded to 20 lakh. Now the employee can receive 20 lakh as the maximum payout amount without any tax amount levied. In case of the employee’s death the first nominee enlisted by the employee is entitled to receive the amount. However, it is imperative to note that any amount registered beyond 20 lakh will be entitled to pay tax.
From India, Noida