Gratuity Limit Raised - Jpg Download

Times Of India dated 5th March,2010:
It has been reported that the Government has approved raising the ceiling for payment of Gratuity for Private Employees from Rs.3.50 Lacs to Rs.10 Lacs.
The decision was taken in a meeting chaired by the Prime Minister, on Thursday.
Vasant Nair

We will have to wait for some more time.The Govt. is planning to introduce a bill in the current seesion of parliament to ammend the Payment of Gratuity Act 1972. Once the bill is passed the act will be ammended and then it will be applicable.
Arvind

Does this cover the autonomous societies under the administrative control of the various Ministries of the Govt. of India

Dear All,
Attached please find one of the news published with Deccan Herald in reference with the below detailed by Mr. Vasant.
Regards,
Amit Seth.

it will be effective only when this (amendment) be forwarded to the president signature.
regards
jawahar

Thanks for the information. yes it is raised but the same will be placed in the parliament on Monday.

Hi,
can somebody let me know if there is any change in the Formula for calculation of Gratuity in Corporates??
Gratuity = Basic*15* Number of years served in one organation/26
If there is any change in the abopve formula??

No
The amount so calculated is more than Rs.3.50 lakhs an employee will get Rs.3.50 only. Now this ceiling has been raised to Rs.10 lakhs

Gratuity is calculated under the methodology laid down in Payment of Gratuity Act. The amount so arrived if it exceeds beyond Rs.3.50, the employee will get Rs.3.50 lakhs only. If is is less than 3.50 lakhs he will get actual. Now this ceiling has been raised to Rs.10 lakhs. The upper ceiling has been revised several times in the past since then Gratuity Act was passed and came into force. For eligibility, calculation, entitlement one should go through the details of Payment of Gratuity Act.

Earlier, Gratuity upto 3.5 lakhs was not taxed.
Does anyone know if in the raised limit, Income tax for the amount above 3.5 Lakhs is applicable?