Gratuity Payment Dilemma: How to Handle Tax on Amounts Over Rs. Ten Lakhs?

Dear Colleague,

Kindly advise on Gratuity payment as outlined below:

1. In case of Gratuity exceeding Rs. Ten Lakhs, i.e., approximately Rs. 1,300,000/-
2. Can we deduct tax on 3 Lakhs as per the slab?

An accounts professional does not agree to pay more than Rs. 1,000,000/- under any circumstances. Please provide guidance so that we can present an example to him.

Thank you,
Regards,
Rakesh Dubey

Please ask your accounts professional to refer to "The Payment of Gratuity (Amendment) Bill, 2017". This will make things clear.