Gratuity limits


1. where is  ceiling of  maximum 16 1/2 months  applicable in gratuity act .
 
 
as in new proposals of 7th pay commission it is proposed to remove.
 
2. is limit of maximum rs. 350000  applicable in some cases in gratuity act or in every case it is rs. 10,00,000
 
regards
 
naresh
on the behalf of a employer - fully charitable hospital
policy : gratuity as per act.
 
Reply   
 
FIN

From your post it is believed that Payment of Gratuity Act is applicable.

The tax free limit for Gratuity is Rs.10 lacs, amount above Rs.10 Lacs  can be subjected to tax treatment.

Service more than 6months is treated as 1 year.

Until any change is notified the existing provisions shall prevail.

 
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