Corporate Law - Gratuity is that part of the salary of an employee when he received to employer. When leaving job. The payment of Gratuity act, 1972.means any person employed on wages in any establishment factory,mine, oilfield, plantation, port, railway company or shop or establishment in state which 10 or more persons are employed on any day of [&helli...
Read MoreCorporate Law - This article is an attempt to create awareness amongst Indian and Multinational companies about the tax benefits available to Indian and Multinational Companies under Pay as you Go and Gratuity Trust Formation Option for Payment of Gratuity. Gratuity benefits are governed by “The Payment of Gratuity Act 1972” and paid by the C...
Read MoreCorporate Law - Salary is defined to include: a) Wages b) Annuity c) Pension d) Gratuity e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages f) Advance of Salary g) Leave Encashment h) Annual accretion to the balance of Recognized Provident Fund i) Transferred balance in Recognized Provident Fund j) Contribution by Cent...
Read MoreCorporate Law - section 17 of the Income-tax Act defines the term salary. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary....
Read MoreCorporate Law - Difference Between Statutory Provisions Applicable To Companies Under Existing Payment Of Gratuity Act 1972 (Amended) & Social Security Code, 2020 To Be Effective From 01.04.2021 This article is an attempt to elaborate the difference between Statutory provisions applicable to Companies under Existing Payment of Gratuity Act 1972 (Amen...
Read MoreCorporate Law - The Government has issued Notification the same day wherein gratuity limit has been increased from Rs.10 lakhs to Rs.20 lakhs under the Payment of Gratuity Act, 1972....
Read MoreCorporate Law - Decision:The Payment of Gratuity (Amendment) Bill, 2018 has been passed by Lok Sabha on 15th March, 2018 and by the Rajya Sabha on 22nd March, 2018, has been brought in force on 29th March, 2018. Background: The Payment of Gratuity Act, 1972 applies to establishments employing 10 or more persons. The main purpose for enacting […]...
Read MoreCorporate Law - The Payment of Gratuity (Amendment) Bill, 2018 has been passed by parliament today. The bill ensures harmony amongst employees in the private sector and Public Sector Undertakings/Autonomous Organizations under Government who are not covered under CCS (Pension) Rules. These employees will be entitled to receive higher amount of gratuity a...
Read MoreCorporate Law - Clause 3 of the Bill seeks to amend the provision relating to calculation of continuous service for the purpose of gratuity in case of a female employee who has been on maternity leave....
Read MoreCorporate Law - The present upper ceiling on gratuity amount under the Act is Rs. 10 Lakh. The provisions for Central Government employees under Central Civil Services (Pension) Rules, 1972 with regard to gratuity are also similar. Before implementation of 7th Central Pay Commission, the ceiling under CCS (Pension) Rules, 1972 was Rs. 10 Lakh. However, w...
Read MoreKrishna Gopal Tiwary & Anr. Vs Union of India (Supreme Court of India) - Krishna Gopal Tiwary & Anr. Vs Union of India (Supreme Court) What is exempt from the Income Tax Act is the amount of gratuity received under the Gratuity Act to the extent it does not exceed an amount calculated in accordance with the provisions of sub-sections (2) and (3) of Section 4 of the G...
Read MoreSteel Authority of India Ltd. Vs Raghbendra Singh & Ors. (Supreme Court of India) - Steel Authority of India Ltd. Vs Raghbendra Singh & Ors. (Supreme Court) Supreme Court held that gratuity money of an employee can be withheld and forfeited in case of recovery of dues such as overstaying in official accommodation. FULL TEXT OF THE SUPREME COURT JUDGMENT We have heard learned se...
Read MoreIrel (India) Limited Vs P. N. Raghava Panicker (Kerala High Court) - The issue under consideration is whether a trainee is excluded from the definition of the term 'employee' under the Gratuity Act? A trainee is not excluded from the definition of the term 'employee' under the Gratuity Act. What is excluded is an 'apprentice'....
Read MoreBCH Electric Limited Vs Pradeep Mehra (Supreme Court) - BCH Electric Limited Vs Pradeep Mehra (Supreme Court) In a notable judgment in the field of gratuity law, the Supreme Court held that Section 4(5) of the Payment of Gratuity Act, 1972 will apply only when there are alternative options for the employee under the Act and under the terms of contract wi...
Read MoreAmbika Mission Boys Middle School Vs State of Chhattisgarh (Chhattisgarh High Court) - Ambika Mission Boys Middle School Vs State of Chhattisgarh (Chhattisgarh High Court) (i) The State would be employer within the definition of Payment of Gratuity Act, 1972 for the teachers/employees of aided educational institutions. (ii) There cannot be unjustified classification between the two cl...
Read MoreNotification No. 16/2019 [S.O. 1213(E)] - (08/03/2019) - Govt increases Gratuity exemption limit u/s Section 10(10)(iii) to ₹ 20 lakhs from existing Rs. 10 Lakh vide Notification No. 16/2019 dated 8th March, 2019....
Read MoreNO. 12 OF 2018 - (29/03/2018) - (1) This Act may be called the Payment of Gratuity (Amendment) Act, 2018. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint....
Read MoreNotification No. S.O. 1421 (E) - (29/03/2018) - Central Government hereby specifies for the purposes of the said clause that the total period of maternity leave in the case of a female employee shall not exceed twenty-six weeks....
Read MoreNotification No. S.O. 1419(E). - (29/03/2018) - Central Government hereby appoints the 29th day of March, 2018 as the date on which Payment of Gratuity (Amendment) Act, 2018 shall come into force....
Read MoreNotification No. S.O. 1420 (E). - (29/03/2018) - 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....
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Krishna Gopal Tiwary & Anr. Vs Union of India (Supreme Court of India) -
Steel Authority of India Ltd. Vs Raghbendra Singh & Ors. (Supreme Court of India) -
Irel (India) Limited Vs P. N. Raghava Panicker (Kerala High Court) -