Is There Any Maximum Limit For Gratuity Amount?

Dear All Seniors
My 1 employee is retired and he has worked for 32 year in our company. As per the gratuity calculation Rs.2307692/- amount is payable for gratuity. We have LIC - gratuity fund scheme.
is there any maximum limit for gratuity??
Kindly let me know that can we pay this amount through LIC scheme or only 1000000 is payable, which exempted under income tax Act.
As per my knowledge Rs.2307692/- is payable but please confirm the same.

As per PGA you are liable to pay only Upto 10 Lakh which is tax free under IT Act. Over & above it is your sole discretion but above 10 Lakh amount will be Taxable.

Please refer section 4 (3) of Gratuity Act for limit of Gratuity Payment.

Dear Mr. Farukh,
Pl.follow as replied by Mr. Prasahant.
Regards
Ravi

Dear Mr. Farukh,
Pl.follow as replied by Mr. Prasahant.
V K Sharma
HR, Tarapur

There is no limit as far as Gratuity act.However,it is taxable post 10Lakhs . Do refer The payment of Gratuity Act .
Regards
Kasturi

I did refer to the gratuity act
It very clearly says that gratuity shall not exceed rs. Ten lakhs
You may check section 4 (3) of Gratuity Act

This thread is confusing. Can someone post the actual section from the latest version of the Act?

Maximum Gratuity which can be paid is Rs20 lakhs.
If company wants to pay more than 20 lakhs ,balance amount can be termed Ex gratia or performance bonus.
As far as I can understand: The ceiling of Rs. 20 lakh applies to the aggregate of gratuity received from 1 or more employers in the same or different years.
Beyond 20 Lakhs amount of gratuity received is taxable.