payment of gratuity act 1972

How to Claim Gratuity

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...

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Tax Benefits to Companies under Pay as you Go and Gratuity Trust Formation Option for Payment of Gratuity

Corporate 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...

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Tax Treatment of Income from Salary in Brief

Corporate 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...

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Salary Income – Answer to Common issues

Corporate 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....

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Gratuity Payment under Social Security Code 2020 wef 01.04.2021

Corporate 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...

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Enhancement of Gratuity Limit with effect from 29/03/2018

Corporate 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....

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Payment of Gratuity (Amendment) Act, 2018 brought in force on 29th March, 2018

Corporate 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 […]...

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Payment of Gratuity (Amendment) Bill, 2018 passed by Parliament

Corporate 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...

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Payment of Gratuity (Amendment) Bill, 2017 introduced in Lok Sabha

Corporate 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....

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Govt may increase Gratuity ceiling to Rs. 20 Lakh for Private Sector Employees

Corporate 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...

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Amendment enhancing exempt Gratuity Limit cannot be treated to be retrospective: SC

Krishna 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...

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Gratuity can be withheld to recover dues from retired employee: SC

Steel 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...

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A Trainee Cannot Excluded from Definition of Term ‘Employee’ under Gratuity Act

Irel (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'....

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SC on entitlelment of Gratuity U/s. 4(5) of Payment of Gratuity Act, 1972

BCH 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...

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State is employer under Gratuity Act for teachers/employees of aided educational institutions

Ambika 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...

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Gratuity exemption u/s Section 10(10)(iii) raised to ₹ 20 lakhs

Notification 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....

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President assents Payment of Gratuity (Amendment) Act, 2018

NO. 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....

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Govt notifies maximum maternity leave of 26 weeks for Gratuity

Notification 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....

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Payment of Gratuity (Amendment) Act, 2018 applicable from 29.03.2018

Notification 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....

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Govt. increases maximum gratuity limit to Rs. 20 Lakhs

Notification 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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Recent Posts in "payment of gratuity act 1972"

How to Claim Gratuity

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 More
Posted Under: Income Tax |

Tax Benefits to Companies under Pay as you Go and Gratuity Trust Formation Option for Payment of Gratuity

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 More
Posted Under: Income Tax |

Amendment enhancing exempt Gratuity Limit cannot be treated to be retrospective: SC

Krishna 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 Gratuity […]...

Read More

Tax Treatment of Income from Salary in Brief

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 More
Posted Under: Income Tax | ,

Salary Income – Answer to Common issues

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 More
Posted Under: Income Tax | ,

Gratuity Payment under Social Security Code 2020 wef 01.04.2021

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 More
Posted Under: Income Tax |

Gratuity can be withheld to recover dues from retired employee: SC

Steel 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 senior counsel for the petitioner and [&he...

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A Trainee Cannot Excluded from Definition of Term ‘Employee’ under Gratuity Act

Irel (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'....

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Salary – Tax Treatment of Gratuities

The word ‘Gratuity’, has not been defined in the Income-Tax Act, 1961(the Act). In the absence of any definition of ‘Gratuity’ in the Act, its meaning as provided in the dictionaries has to be referred to. The word ‘Gratuity’ has been variously defined in the Advanced Law Lexicon by P.R. Aiyar. The aforesaid definition is to b...

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Posted Under: Income Tax |

Procedure of Approval of Gratuity Funds under Income Tax Act,1961

Section 2(5) of the Income Tax Act, 1961 defines an ‘approved gratuity fund’ as ‘a gratuity fund which has been and continues to be approved by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner in accordance with the rules contained in Part C of the Fourth Schedule’. In order to get ...

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Posted Under: Income Tax |

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