I have worked for my previous employer for 18 years and the gratuity was calculated to be 28 lakhs. However, I was told that there is a cap of 20 lakhs and the same was paid. Wanted to know if there is a way of getting the balance 8 lakhs paid as Gratuity was always shows as part of my benefits (CTC). Pl help with some reference materials. Thanks.
From Australia, Sydney
From Australia, Sydney
Hi, Gratuity payable upto 20 Lakhs is is tax exempted. Any amount payable over and above Rs.20,00,000/- is taxable.
From India, Madras
947From India, Madras
Gratuity as per payment of Gratuity Act , the maximum payment ceiling is 20 lakh. If any organization is paying gratuity beyond 20 lakh based on calculation basis of PG Act is taxable.
There are organizations where the gratuity is paid beyond the PG Act formula say 20 days for each completed year of service. If the gratuity amount of any employee is 18 lakhs as per organization's formula which is less than 20 lakhs, then the ITAX impact will be on the difference amount of Organization's formula vs PG Act formula though the total payment of gratuity amount is less than 20 lakh.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
There are organizations where the gratuity is paid beyond the PG Act formula say 20 days for each completed year of service. If the gratuity amount of any employee is 18 lakhs as per organization's formula which is less than 20 lakhs, then the ITAX impact will be on the difference amount of Organization's formula vs PG Act formula though the total payment of gratuity amount is less than 20 lakh.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
I worked as a Superintendent in an aided institution in Punjab and worked over thity year and retired on 31-07-2021 afternoon. My last Salary was (BP+DA) Rs.80074/-. What they (Management ) did , they did not grant Sep.2020 increment and paid seventy % of salary with the malafide intention to reduce the amount of gratuity and leave encashment as well. Till daye not released a single rupee to me. I sent legal notice in August last in 2021 for release of my retiral dues. and handed over all confidential documents to President Managing Committe and Joint Secretary in writing keeping one copy in my record. and handed over the charge to my junior Assistant in writing with details of all files in the almirah and all keys to him in writing. In reply to my legal notice , they replied that they are in decicit and first they eill release gratuity to earlier retired staff and after that to me. It next shocking also wrote that i have not handed over the charge and hand over the same though I have all record i handed over in writing. I went to the college tribunal Punjab. Please advise me can I go to Labour commissioner under the pament of Gratuity Act and how soon I can get my gratuity. I was given farewell party on retirement and also presented with Citation for my services. The Management diverted crores of rupee reserve fund of the institution i worked with to other new instructions established over the years and seldom took back that money. Kindly advise me and guide me.
Regards
Kuldip Sharma
From India, Ludhiana
Regards
Kuldip Sharma
From India, Ludhiana
Meet the controlling Authority under PG Act of the jurisdiction of your organization and raise the dispute. Gratuity to be paid within one month of relieving from the organization. If there is any delay it will attract interest and you will be eligible for your normal gratuity with interest.
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
S K Bandyopadhyay ( WB, Howrah )
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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REQUEST FOR DEDUCTION OF GRATUITY AMOUNT (2).pdf
Security Amount Proof.docx