Dear Mr. Kamal,
Yes, the maximum limit is 10 lakhs as per the new Gratuity Act.
However, the 4 years 240 days;
Referring to the Act, it is enough that one has a service about 240 days in the preceding 12 months and it is not really necessary that they should have completed the one years service. Definitely, considering the definitions of continuous of the continuous service in the Payment of Gratuity Act and the ID Act refers that the employee rendering service of 4 years 10 months is considered to have completed 5 years of continuous service u/s. 24(2) is eligible for Gratuity.
Clarifying as: 4 years 8 months (240 day) considered 1 year. Basically the gratuity component is considered baed on the joining date of the employee till leaving should be considered 5 years.