Gratuity Limit 10 Lakh

Dear All,
What is the means of Gratuity limit Rs 10 lakh (under section 4) it is only for benefit from TDS or it is for maximum limit of Rs.10 lakh for employer to give an employee in case of calculation more than 10 lakh.
If any one have judgement regarding this matter, please share.
Regard
Sikander Dogra

Dear Mr.Sikander Dogra,
Rs. 10 lakh limit is not only for Income Tax exemption, but for statutory claim on gratuity. But if employer wish, this limit is nit applicable as per section 4(5) as under.
"Nothing in this section shall affect the right of an employee receive better terms of gratuity under any award or agreement or contract with the employer"
Abbas.P.S