Greetings.. Can anyone help me know that what is the maximum limit of Gratuity to an employee? It is not about tax exempted limit but the maximum payout in name of Gratuity
From India, Noida
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1From India, Noida
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The Ceiling Limit of Tax free Gratuity amount is upto Rs. 20 Lakh. The employer can also pay the above said limit, however any payment over and above 20 Lakh will attract TDS.
From India, Madras
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From India, Madras
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Dear Colleague, the Gratuity Act does not stipulate any "Minimum Gratuity." It is 15 days of wages last drawn for every completed year of service. That is the calculation to be followed. As far as the tax aspect, our colleague has already provided a reply.
From India, Chennai
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From India, Chennai
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Gratuity Ceiling for Government Employees
The present upper ceiling on the gratuity amount under the Act is Rs. 10 lakh. The provisions for Central Government employees under the Central Civil Services (Pension) Rules, 1972, with regard to gratuity, are also similar. Before the implementation of the 7th Central Pay Commission, the ceiling under the CCS (Pension) Rules, 1972, was Rs. 10 lakh. However, with the implementation of the 7th Central Pay Commission, in the case of Government servants, the ceiling has been raised to Rs. 20 lakh.
From India, Hyderabad
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The present upper ceiling on the gratuity amount under the Act is Rs. 10 lakh. The provisions for Central Government employees under the Central Civil Services (Pension) Rules, 1972, with regard to gratuity, are also similar. Before the implementation of the 7th Central Pay Commission, the ceiling under the CCS (Pension) Rules, 1972, was Rs. 10 lakh. However, with the implementation of the 7th Central Pay Commission, in the case of Government servants, the ceiling has been raised to Rs. 20 lakh.
From India, Hyderabad
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There are certain circumstances which lead to the payout of gratuity. An employee receives gratuity in case of any unfortunate incident that occurs. If the employee faces any unfortunate incident that may result in death or disability, then the employer has to pay gratuity.
Earlier, the limit to gratuity was up to 10 lakh, as this amount is entitled to exemption from tax. In accordance with the changes in the government's new rules, the amount has been increased to 20 lakh. Now, the employee can receive 20 lakh as the maximum payout amount without any tax levied. In case of the employee’s death, the first nominee enlisted by the employee is entitled to receive the amount. However, it is imperative to note that any amount registered beyond 20 lakh will be subject to tax.
From India, Noida
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Earlier, the limit to gratuity was up to 10 lakh, as this amount is entitled to exemption from tax. In accordance with the changes in the government's new rules, the amount has been increased to 20 lakh. Now, the employee can receive 20 lakh as the maximum payout amount without any tax levied. In case of the employee’s death, the first nominee enlisted by the employee is entitled to receive the amount. However, it is imperative to note that any amount registered beyond 20 lakh will be subject to tax.
From India, Noida
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