When is gratuity payable in india

INR 10 lakhs is the maximum cap of receiving gratuity. The company cannot pay you an amount higher than that as gratuity even if you have completed more number of years in the company. This maximum cap defines the highest limit that is payable to you by different employers throughout your work-span. If a company still decides to pay you an additional sum of money, they can do so in the form of bonus or ex-gratia.

Yes, you can nominate somebody to get your gratuity if you die. You will have to fill Form F upon joining the company in order to do so. Gratuity is generally released during or soon after or before settling the full and final of the employee. As per the Government mandate, the employer has to pay this amount in a time span of 30 days. If this payment is delayed, the employer will end up paying an interest on the gratuity amount right from the due date to the time that the payment is done.

No, you need to complete at least 5 full years in the same company to qualify. As per the Madras High Court ruling, if you have completed days of service in the 5th year of work, you might be able to avail gratuity.

I work under a contract in my current company. If I retire or resign after 5 years, will I still get my gratuity? You will receive gratuity if you are on the company roll and are considered to be an employee of the company; not otherwise. Professional Tax Professional Tax in Maharashtra.

PF Withdrawal Salary calculator. Best investment policies at lowest premiums. Top performing investment plans, better than mutual funds. Plans with zero commissions. Gratuity: All You Wanted to Know. How does Gratuity Payment Work? Gratuity Rules and Regulations. Eligibility Criteria for Receiving Gratuity. Gratuity can be received by the employee on the following criteria: The employee has to be eligible for superannuation The employee should have retired The employee must have resigned after completing 5 years with the same employer The employee dies or suffers with a disability caused due to an illness or accident.

For example, you have worked with the XYZ company for a period of 15 years. Your last drawn basic salary along with dearness allowance was Rs 30, As per the Gratuity Act, the amount of gratuity cannot be more than Rs 20 lakh. Any excesses would be treated as ex-gratia. If the number of years you have worked in the last year of employment is more than six months, then it will be rounded to the nearest figure.

Suppose your tenure of service is 16 years 7 months, then you receive the gratuity for 17 years. Otherwise, its for 16 years if it happens to be 16 years 4 months.

For example, you have a basic salary of Rs 30, You have rendered continuous service of 7 years and the employer is not covered under the Gratuity Act. The ClearTax Gratuity Calculator is an easy-to-use generic tool, where you enter the basic salary and the years of service.

It gives you an estimate of the gratuity you would receive, after five or more years of continuous service. The gratuity calculator shows you the gratuity figures in seconds.

It helps you plan your finances by investing the gratuity in a smart manner, for a maximum return. You can use the gratuity calculator from the comfort of your home or practically anywhere to get the gratuity amount. The tax treatment of the gratuity amount depends on the type of employee who has to receive the gratuity.

For example, your employer had paid you a gratuity of Rs 12 lakh. As per the gratuity calculation in the earlier example, you are eligible for a gratuity amount of Rs 2,59, The government has set Rs 20 lakh as the upper tax-free limit.

The lowest of the three figures is Rs 2,59,, which is exempt from tax. You must pay tax on the remaining amount of Rs 9,40, as per your income tax slab. Subscribe to Mint Newsletters. Internet Not Available. Wait for it… Log in to our website to save your bookmarks.

Yes, Continue. Wait for it… Oops! Your session has expired, please login again. Listen to this article. Syndicate More. User menu Site Map.