Hello everyone. I have a query regarding actual payment of gratuity for eligble employees.
In my organisation there are 3 people who have completed more than 5 years of service as of 31-Mar-20.
Also the gratuity was not added into the CTC of the employees while joining as this practice of adding gratuity in the CTC was creating confusion in the mind of employees in understanding their net take home salary.
My query is the following
1) The employees are asking for their gratuity payment while continuing in service due to cash crunch. Can this be done?
2) If gratuity is paid now then will it still be exempt u/s 10 of IT act or be added to income.
3) If the employee continues to work for say another 6 years and as per Gratuity act again be eligible for gratuity then if pt.1 is possible he will be paid gratuity considering 6 years or 11 years.
4)Finally is it mandatory to mention gratuity amount in CTC sheet.
Please clarify if the above mentioned point can be done also.
In my organisation there are 3 people who have completed more than 5 years of service as of 31-Mar-20.
Also the gratuity was not added into the CTC of the employees while joining as this practice of adding gratuity in the CTC was creating confusion in the mind of employees in understanding their net take home salary.
My query is the following
1) The employees are asking for their gratuity payment while continuing in service due to cash crunch. Can this be done?
2) If gratuity is paid now then will it still be exempt u/s 10 of IT act or be added to income.
3) If the employee continues to work for say another 6 years and as per Gratuity act again be eligible for gratuity then if pt.1 is possible he will be paid gratuity considering 6 years or 11 years.
4)Finally is it mandatory to mention gratuity amount in CTC sheet.
Please clarify if the above mentioned point can be done also.