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Tax-free gratuity ceiling raised to Rs 20 Lakh

Much awaited notifications under the Payment of Gratuity Act has been issued. Tax-free gratuity ceiling raised to Rs 20 Lakh for private sector employees. download notifications  copy.

GRATUITY INC 20 LACS NOTIFICATION

Vide Gazette Notification no. S/O 1419 (E) dated 29th March 2018 changes vide the Payment of Gratuity (Amendment) Act, 2018 (12 of 2018) shall be effective from 29thMarch 2018

Vide Gazette Notification no. S/O 1420 (E) dated 29th March 2018 the amount of gratuity payable to an employee shall not exceed twenty lac rupees (from existing ten lac rupees) as per section 4(3) of The Payment of Gratuity Act 1972

Vide Gazette Notification no. S/O 1421 (E) dated 29th March 2018 that the total period of maternity leave in the case of a female employee shall not exceed twenty-six weeks( from existing twelve weeks)  as per clause (iv) of the Explanation to subsection (2) of Section 2A of The Payment of Gratuity Act, 1972.

Copy of Gazette Notifications is being attached herewith for ready reference