vmlakshminarayananHi, Gratuity payable upto 20 Lakhs is is tax exempted. Any amount payable over and above Rs.20,00,000/- is taxable.
From India, Madras
nanu1953Gratuity as per payment of Gratuity Act , the maximum payment ceiling is 20 lakh. If any organization is paying gratuity beyond 20 lakh based on calculation basis of PG Act is taxable.
There are organizations where the gratuity is paid beyond the PG Act formula say 20 days for each completed year of service. If the gratuity amount of any employee is 18 lakhs as per organization's formula which is less than 20 lakhs, then the ITAX impact will be on the difference amount of Organization's formula vs PG Act formula though the total payment of gratuity amount is less than 20 lakh.
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From India, New Delhi