What will be the maximum amount of Gratuity

[hare krishna verma]

TO ALL

The limit of gratuity increased from Rs.3,50,000.00 to Rs.10,00,000.00 and exemption of income tax available to the extent of Rs.10,00,000/- only. The Gratuity in excess to the limit of Rs.10, 00,000.00 are taxable in the hands of employee.

The amount of my gratuity as per gratuity Act calculated to Rs.10, 67,833.00 & as per OSR Rs.6, 65,650.00 and I believe the amount of gratuity are calculated both as per gratuity act & as per OSR and maximum out of both amount are payable to the officer as gratuity but the benefit of exemption of Tax available only to Rs.10,00,000.00.

But I have received only Rs.10, 00,000.00 lacs as gratuity less Rs.67, 833/- calculated as per gratuity
Any advice/ comments  on above from the learned  memebers of the group are welcome.
--

Thanks & Warm Regards,

H.K.Verma

(Ex -Senior Manager-Central Bank of India)

C/O Legal Access Advocates,132-A,Anarkali Complex,Jhandewal Extension

New Delhi-55 Mobile No-09311177525/08750340509

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[hare krishna verma]

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Thanks & Warm Regards,

H.K.Verma

(Ex -Staff-Central Bank of India)

[PM]

Dear Mr.Hare Krishna Verma,

01.As per Gratuity Act 1972 the amount of gratuity payable to an
employee shall not exceed three lakhs and fifty thousand rupees.

02.Central Govt has amended the Gratuity Act on 24th May 2010,and
thereby the maximum amount of gratuity payable stand enhanced from
3.5 lakhs to Rs.10 lakh.

03.Earlier the limit defined for exemption under Income Tax Act was
Rs.3.5 lakhs,consequent upon the amendment of Gr.act the same has
been enhanced to Rs.10 laks at present.

Under this background, whatever amount you have received is within
the maximum limit eligible.

On Apr 25, 6:45 am, hare krishna verma <hkv1...@gmail.com> wrote:
>  TO ALL
>
> The limit of gratuity increased from Rs.3,50,000.00 to Rs.10,00,000.00 and
> exemption of income tax available to the extent of Rs.10,00,000/- only. The
> Gratuity in excess to the limit of Rs.10, 00,000.00 are taxable in the hands
> of employee.
>
> The amount of my gratuity as per gratuity Act calculated to Rs.10, 67,833.00
> & as per OSR Rs.6, 65,650.00 and I believe the amount of gratuity are
> calculated both as per gratuity act & as per OSR and maximum out of both
> amount are payable to the officer as gratuity but the benefit of exemption
> of Tax available only to Rs.10,00,000.00.
> But I have received only Rs.10, 00,000.00 lacs as gratuity less Rs.67, 833/-
> calculated as per gratuity
> Any advice/ comments  on above from the learned  memebers of the group are
> welcome.
> --
>

> *Thanks & Warm Regards,*

> *Thanks & Warm Regards,*

[hare krishna verma]

Sir,

 

1.When the maximum limit of Gratuity was Rs.3.50 lacs officers are being paid Gratuity more than Rs.3.50 Lacs as per officers Service Regulation.But Income Tax benifit available of Rs.3.50 Lacs.

 

2. Why not gratuity calculated as per officers service regulation in excess of Rs.10.00 lacs should be paid.

 

Please clarify on above points.

For more options, visit this group at http://groups.google.com/group/bankpensioner?hl=en-GB.

--

Thanks & Warm Regards,

H.K.Verma

[PM]

Dear Mr.Hare Krishna,

01.When the maximum limit of gratuity was Rs.3.50 lakhs, those who
were covered under Gratuity Act 1972 received Rs.3.50 lakhs only even
if the actual calculation were higher.

02.However , employees governed by companies/Banks' Gratuity Rules,
where companies/Banks pay more than the amount stipulated by
Gratuity Act, 1972,employees received actual amount beyond maximum
limit stipulated.

03. Those who are covered under Gratuity Act 1972, will get the
maximum stipulated amount of Rs.10 lakhs,at present, even if actual
calculation goes higher.

> gave me."- Hide quoted text -
>
> - Show quoted text -

[synd_man]

Dear Friend,

As per the Gratuity Act, the Maximum amount payable at present is
Rs.10.00lacs and even though as per the calculations in individual cases, it
crosses the limit of Rs.10.00lacs only Rs.10.00lacs is being paid. It may be
observed that earlier when the limit was Rs.3.50lacs as per the Gratuity
act, the amount calculated as per the provisions of OSR was usually more
than the limit of Rs.3.50lacs under Gratuity act and higher amount as per
OSR was being paid. But for the amount paid more than the limit of
Rs.3.50lacs,the Income Tax was applicable. However, after enhancing the
Gratuity limit, the amount under gratuity act works out to be more than
that under OSR and in some of the individual cases it may cross even the
enhanced limit of Rs.10.00lacs but paid only Rs.10.00lacs as per the limit
imposed. This is the case cited below.