As per the Gratuity Act of 1972, the maximum amount payable is INR 20 lakhs. If a company decides to pay a higher amount as gratuity and includes this in a trust deed, will the IT department approve the deed?
Hi, Gratuity, as per the Payment of Gratuity Act, has a maximum payment ceiling of twenty lakhs, which will be tax-free. Any amount paid over and above twenty lakhs will be subject to income tax.
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