Naresh (SEWAK) 03 October 2015

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.

Kumar Doab (FIN) 03 October 2015

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.