Kukurai,
Please go thro\' the latest amendments in the Gratuity Act yourself and look into the answers given by seniors. You will understand that as per Act, maximum Gratuity payable is Rs.10 lakhs by an employer ( not together by all employers, as some body posted), but which does not prohibit an employer from paying more amount as Gratuity. Tax exemption will be available only for Rs.10 lakhs and the rest if any, only attracts IT, which has to be deducted from gratuity payable. There is no confusion on this.
Dr.Gopan
Please go thro\' the latest amendments in the Gratuity Act yourself and look into the answers given by seniors. You will understand that as per Act, maximum Gratuity payable is Rs.10 lakhs by an employer ( not together by all employers, as some body posted), but which does not prohibit an employer from paying more amount as Gratuity. Tax exemption will be available only for Rs.10 lakhs and the rest if any, only attracts IT, which has to be deducted from gratuity payable. There is no confusion on this.
Dr.Gopan