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Payment of Gratuity Act 1972

Latest Articles


Gratuity Law Under New Labour Code: Analysis of Social Security Code, 2020

Corporate Law : The Social Security Code, 2020 extends gratuity benefits to fixed-term and gig workers, standardizes wage definitions, and mandate...

December 21, 2025 4329 Views 0 comment Print

Taxability of Gratuities Received By An Employee

Income Tax : Explains how gratuity exemptions differ for government, private, and Gratuity Act–covered employees. Key takeaway: exemption is ...

December 11, 2025 7047 Views 0 comment Print

Taxability of Retirement Benefits in India

Income Tax : Learn about the tax treatment of key retirement benefits in India, including gratuity, pension, leave encashment, provident fund, ...

November 8, 2025 13821 Views 1 comment Print

Salary Income – Answer to Common issues

Income Tax : Detailed summary on salary, allowances, perquisites, pension, gratuity, HRA, standard deduction, and related tax exemptions under ...

November 3, 2025 69377 Views 21 comments Print

Tax Treatment of Income from Salary in Brief

Income Tax : This guide breaks down the complete taxation of salary income in India—covering allowances, perquisites, retirement benefits, an...

October 18, 2025 342770 Views 42 comments Print


Latest News


No plan to increase Gratuity payment from 15 days salary to 30 days

Corporate Law : Whether Government is considering to increase the Gratuity payment from 15 days’ salary for each completed year to 30 days’ sa...

March 30, 2022 3951 Views 0 comment Print

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 un...

April 6, 2018 6213 Views 2 comments Print

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...

March 30, 2018 5031 Views 5 comments Print

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 ...

March 22, 2018 19914 Views 7 comments Print

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 cas...

December 19, 2017 11643 Views 3 comments Print


Latest Judiciary


Gratuity Deduction Can’t Be Denied for ITR–Audit Report Mismatch Without Verification

Income Tax : The Tribunal addressed disallowance arising from mismatch between ITR and tax audit report. It held that inadvertent reporting err...

April 20, 2026 2808 Views 0 comment Print

Mumbai ITAT Allows Gratuity, Performance Incentives & Foreign Tax Credit

Income Tax : ITAT Mumbai dismissed revenue's appeal against Thirumalai Chemicals, allowing gratuity, bad debts, and other expenses while also a...

August 14, 2025 411 Views 0 comment Print

Gratuity Forfeiture: Conviction Not Needed for Moral Turpitude -SC

Corporate Law : SC rules criminal conviction not needed for gratuity forfeiture if misconduct involves moral turpitude. Upholds forfeiture in frau...

February 23, 2025 1236 Views 0 comment Print

If workmen engaged through multiple contractors, contract labour would be employees of principal employer for purpose of gratuity

Corporate Law : Some workmen had continued with IIT-Bombay through multiple contractors, therefore, for the limited purpose of payment of gratuity...

October 21, 2024 2085 Views 0 comment Print

No penalty for higher gratuity exemption claim due to misunderstanding of law

Income Tax : ITAT Nagpur quashed the penalty on Ravindra Kharche, finding no misreporting of income due to bona fide claims regarding gratuity ...

October 6, 2024 1017 Views 0 comment Print


Latest Notifications


No Gratuity Cap under NPS for Civil Re-Employment After Military Service

Corporate Law : The government clarified that gratuity for civil service after re-employment will not be restricted by gratuity already received f...

December 26, 2025 447 Views 0 comment Print

No Gratuity Payable on Resignation Under NPS Rules Except in Specific Cases: DoPPW

Corporate Law : DoPPW clarifies that gratuity under CCS (Payment of Gratuity under NPS) Rules, 2021 is payable only upon retirement/absorption, no...

October 24, 2025 1446 Views 0 comment Print

Gratuity Limit Enhancement: Govt. Increases to Rs 25 Lakh

Corporate Law : Government of India enhances maximum limit of gratuity for Central Government employees to Rs 25 Lakh, implementing Seventh CPC re...

May 30, 2024 13080 Views 1 comment Print

Karnataka Compulsory Gratuity Insurance Rules, 2024

Corporate Law : Explore the Karnataka Compulsory Gratuity Insurance Rules 2024 introduced by the Government of Karnataka. Learn about coverage, co...

January 10, 2024 7413 Views 1 comment Print

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

Income Tax : Govt increases Gratuity exemption limit u/s Section 10(10)(iii)  to ₹ 20 lakhs from existing Rs. 10 Lakh vide Notification No. ...

March 8, 2019 80277 Views 8 comments Print


Gratuity Act is applicable to establishments covered by Factories Act’

December 20, 2007 2282 Views 0 comment Print

Notwithstanding non-applicability of Payment of Gratuity Act, 1972 to units having less than 10 workmen, units covered by the Factories Act, 1948, were to apply the gratuity law to their workers, the Madurai Bench of the Madras High Court has held. Agreeing with the decision of the Joint Commissioner of Labour, Madurai (Appellate Authority under the Gratuity Act), that Section 1(3)(a) of the Gratuity Act was applicable even to establishments having less than 10 workers, under notification dated September 9, 1967 of the Department of Industries, Labour and Housing, Tamil Nadu, extending the Factories Act to all tailoring units in the State, Mr Justice K. Chandru ruled that the contention of writ petitioner (Star Tailoring, Tirunelveli) that Gratuity law would not apply to his units had to be rejected.

Employee Joined as Trainee is Eligible for Gratuity

May 2, 1994 8766 Views 0 comment Print

The issue under consideration is whether the employee joined as a trainee is eligible for gratuity as per Payment of Gratuity Act, 1972?

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