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Government vide notification S.O. 1420 (E) dated 29.03.2018 increased the limit of amount of gratuity payable to an employee under sub-section (3) of section 4 of the Payment of Gratuity Act, 1972 (39 of 1972) from from the existing limit of Rs. 10 Lakh to Rs. 20 Lakhs.
MINISTRY OF LABOUR AND EMPLOYMENT
NOTIFICATION
New Delhi, the 29th March, 2018
NOTIFICATION
New Delhi, the 29th March, 2018
S.O. 1420 (E).—In exercise of the powers conferred by sub-section (3) of section 4 of the Payment of Gratuity Act, 1972 (39 of 1972), the Central Government hereby specifies that the amount of gratuity payable to an employee under the said Act shall not exceed twenty lakh rupees.
[No. S-42012/02/2016-SS-II]
MANISH GUPTA, Jt. Secy.
List of Recent Gratuity Related Notification
| Title | Notification No. | Date |
|---|---|---|
| Payment of Gratuity (Amendment) Act, 2018 applicable from 29.03.2018 | Notification No. S.O. 1419(E). | 29/03/2018 |
| Govt. increases maximum gratuity limit to Rs. 20 Lakhs | Notification No. S.O. 1420 (E). | 29/03/2018 |
| Govt notifies maximum maternity leave of 26 weeks for Gratuity | Notification No. S.O. 1421 (E) | 29/03/2018 |
| President assents Payment of Gratuity (Amendment) Act, 2018 | NO. 12 OF 2018 | 29/03/2018 |
Tags: gratuity, gratuity 10 lakh, gratuity limit, payment of gratuity act, payment of gratuity act 1972
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I retired on 31 Jan 2017 from NTPC Ltd, a CPSU and was paid gratuity of Rs. 10 Lakh and no income tax was deducted.
Subsequently in June 2018 I was paid an additional Rs. 10 Lakh but income tax was deducted from this payment.
Kindly inform whether I am eligible for exemption from income tax on the enhanced payment of Rs. 10 Lakh recieved in June 2018.
PSu not covered in Govt org. and this provision not applicable for you as you retired before 29th MArch 2018
I was retiRed on 31072012 on superannuation from Indian Overseas Bank after serving 36 years Total salary for calculation of gratuity Rs 60559.66 eligible for gratuity of Rs 1257777.55 only paid Rs 1000000 claiming difference of Rs 257777.55 Please guide me bank refusing to pay claim amount saying that maximum payable gratuity as per act is Rs.1000000 on my date of Retirement please advise and guide
I was retired on 31.12.2016 worked in NLC INDIA.
got only ₹ 10 lakh. Any possible to get the maximum benefit.
I have worked with a public limited company and retired in May 2016 ,however company extended my tenure for another two years and finally retired and relived on 31st august 2018. I had joined this group of company in May 1981, can you please calculate my amount of gratuity ,keeping in view the amendments in Gratuity Act 1972 , dated 29th March 2018 regarding enhancement of its limit from 10 ;lacs to 20 Lacs.
Is this limit increased for all(Whether or not covered under gratuity act) or for only those who are covered under gratuity act.
I am retired on 31/10/2017 from Gujarat industrial Development Corporation (Government of Gujarat Undertaking), please let me know that can I am eligible for the increase of Gratuity limit from 10.0 lacs to 20.0 lacs
I RETIRED ON 30.11.17 FROM GOVT OF INDIA UNDERTAKING.
I HAVE RECEIVED 20 LAKH GRATUITY
10 LAKH TAX FREE AND 10 LAKH TAXABLE
IS IT CORRECT
My father was expired in Nov 2017 & he was suppose to retire from ONGC on 28.2.2018. My Mother received gratuity of Rs 10 lakh tax free + 10 lakh with 33% tax deduction. The gazette notification s.o. 1419(E) & 1420(E) passed on 29.03.2018. please do inform whether I can this tax refund.
With due regards.
Yes. You can file revised return and claim exemption.
I am retired on 30.6.2017 as private sector employee. As per notification the exemption limit of Gratuity is increased to 20 lakh. let me know I am eligible for the enhanced limit of Rs. 20 lakhs as tax free.
Yes. You can file revised return and claim exemption.
I left my job with Gratuity INR 15 lakh on 30th Aug 2017 from Private Sector. Is it tax free in FULL in PY 2017-18 with AY 2018-19??
I am a retired executive from Oil PSU. I retired in June,2017 and entitled for new pay scale which is effective from 01/01/2017.
Please let me know is the increased gratuity amount of Rs.10 lakh is taxable?
As you are govt employee, your whole gratuity is tax free.