Maximum Amount to be Paid to Employees
The maximum amount to be paid to the employee is currently 20 lakhs or has it increased to 25 lakhs?
Legal Binding of Gratuity Payment
Secondly, is it legally binding to pay the amount if the ceiling amount fixed in the Gratuity Act is more than 20 lakhs?
From India, Bengaluru
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The maximum amount to be paid to the employee is currently 20 lakhs or has it increased to 25 lakhs?
Legal Binding of Gratuity Payment
Secondly, is it legally binding to pay the amount if the ceiling amount fixed in the Gratuity Act is more than 20 lakhs?
From India, Bengaluru
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Hi, Gratuity amount paid up to Rs. 20 lakhs will be free from income tax (tax exemption applicable). Any amount paid over and above Rs. 20 lakhs will be subject to tax. Please note that there is no statutory obligation on the part of the employer to make a payment beyond 20 lakhs, but the employer at their own discretion can make a payment beyond Rs. 20 lakhs. However, tax will be deducted based on the tax slab of the employee.
From India, Madras
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1015From India, Madras
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