Though the Parliament has approved the amendment to the Payment of Gratuity Act, 1972, it is still not legalized as a law for private sector employees. Please let me know if I have to retire on 31-Mar-2018. Will I be eligible as per the new law, or does the Rs. 1000000 limit still apply?
From India, Chennai
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From India, Chennai
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Mr. Yogesh, can you please attach any document regarding your statement "the Parliament has approved the amendment to the Payment of Gratuity Act, 1972"? What amendment? This is still not legalized as a law for private sector employees. Please elaborate. What is the amount of gratuity due to you as of 31/03/2018?
From India, New Delhi
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631From India, New Delhi
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Dear sir, I just wanted to know by when this law will be legally effective? I had read about the parliament given green signal to go ahead & amend this act.
From India, Chennai
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From India, Chennai
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Yes... even i have not come across with any document as of now
From India, Mumbai
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From India, Mumbai
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Dear Mr Yogesh, Please let me know how it will impact you?
From India, New Delhi
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From India, New Delhi
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Dear Yogesh,
The latest, as per press reports (13.09.17), is that the Union Cabinet has decided to introduce the Payment of Gratuity (Amendment) Bill 2017 in the next session. After the bill is passed by the Parliament, it will become a part of the Payment of Gratuity Act once it receives the assent of the President. Subsequently, the Government of India will have to publish the date from which the amended law would be operative. Once this process is completed, the revised ceiling would be applicable to both the government sector and the private sector, encompassing all establishments covered under the Act.
Following this, there will be an amendment in the Income Tax Act which will set the maximum amount of tax-free gratuity at Rs. 20 lakh. Until then, tax liability will persist for any amount exceeding Rs. 10 lakh.
Thank you.
From India, Mumbai
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The latest, as per press reports (13.09.17), is that the Union Cabinet has decided to introduce the Payment of Gratuity (Amendment) Bill 2017 in the next session. After the bill is passed by the Parliament, it will become a part of the Payment of Gratuity Act once it receives the assent of the President. Subsequently, the Government of India will have to publish the date from which the amended law would be operative. Once this process is completed, the revised ceiling would be applicable to both the government sector and the private sector, encompassing all establishments covered under the Act.
Following this, there will be an amendment in the Income Tax Act which will set the maximum amount of tax-free gratuity at Rs. 20 lakh. Until then, tax liability will persist for any amount exceeding Rs. 10 lakh.
Thank you.
From India, Mumbai
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Payment of Gratuity Amendment Act 2009.doc
PAYMENT OF GRATUITY AMENDMENT ACT 2010.pdf