Zabardast.. Tax free gratuity limit now Rs 20 lakh



New Delhi, Mar 15: The Lok Sabha today passed the Payment of Gratuity (Amendment) bill which seeks to empower the government to fix period of maternity leave and tax-free gratuity amount with an executive order.

After the passage of the Payment of Gratuity (Amendment) Bill in the Rajya Sabha, the government would be able to enhance the ceiling of tax-free gratuity to Rs 20 lakh from existing Rs 10 lakh for employee under the Payment of Gratuity Act.

After implementation of the seventh Central Pay Commission, the ceiling of gratuity amount for central government employees was increased from Rs 10 lakh to Rs 20 lakh. The unions are demanding for inclusion of the change into the Act.

The bill was passed amid the din in the Lok Sabha today as uproar over a host of issues went for the second week in a row.

Earlier in the day, Parliamentary Affairs Minister Ananth Kumar said the Payment of Gratuity (Amendment) Bill was an important piece of legislation and sought the oppositions cooperation.

The bill notifies the period of maternity leave as part of continuous service and proposes to empower the central government to notify the gratuity ceiling from time to time without amending the law.

Moving the bill for passage, Labour Minister Santosh Kumar Gangwar said it is a very important legislation for employees, especially women.

Now, the bill will go to the Upper House for consideration and passage.

At present, formal sector workers with five or more years of service are eligible for Rs 10 lakh tax-free gratuity after leaving job or at time of superannuation.

A senior government official said that the government wants to provide tax-free gratuity of Rs 20 lakh to organised sector workers at par with the central government.

The Payment of Gratuity Act, 1972, was enacted to provide for gratuity payment to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments.

The law is applicable to employees, who have completed at least five years of continuous service in an establishment that has 10 or more persons.

The amendment will also allow the central government to notify the maternity leave period for ?female employees as deemed to be in continuous service in place of existing twelve weeks?.

The proposal comes against the backdrop of the Maternity Benefit (Amendment) Act, 2017 enhancing the maximum maternity leave period to 26 weeks.

LS passes bill to enable govt to double tax-free gratuity to Rs 20 lakh PTI

Don’t Miss

India-Pakistan WAR on June 16, 2019!!!
Wah..Airport like railway station in India this year..See PIC
PM launches Rashtriya Gram Swaraj Abhiyan
Asaram has always tamed controversy, know more about the verdict
Angry Iran won't let US hurt its economy, takes a vow
While BJP's Swamy hails VP's decision, Shiv Sena criticises the move
Cash for vote..Rs 41300000 cash, 4.52 kg gold seized in Karnataka
9 new ministers to take oath as Amarinder Singh to expand cabinet
Breaking: POSCO Act: Ordinance on death for child rapists gets a nod
IMF expects this from India
Sensex ends flat at 34,415.58; tech stocks RISE
18 Rohingyas arrested in Tripura for entering country illegally
BMW India launches third generation of SUV X3
Apple working on iPhone SE 2
Now you don't need a commercial licence for taxis and autos
Modi warns Pak from London,stop terror else face surgical strike..Rapes are worrisome, says PM
10 Points: Where has all the cash disappeared from ATMs
Indu Malhotra 1st women lawyer to become SC judge, Joseph on hold
Yogi red-faced..BJP MLAs praise Samajwadi development work of a Yadav
Simply Superb! Five looks of Ranbir Kapoor as Sanjay Dutt will surprise you
This BJP leader blames porn behind rising child rape cases!
Amit Shah blasts Rahul..Save the Constitution=Save Gandhi Dynasty..Rahul is insulting Ambedkar
50 IIT alumni quit jobs to form political party, declare mission statement
A 14-year-old abducted and raped in a temple in Haryana
Major controversies of Asaram Bapu
Infant raped, killed in MP; 1 arrested
Amitabh Bachchan 'attacked'.. Details here
Good news: All metro stations in Delhi will be counterless soon
UP CM Yogi Adityanath a hit on Facebook
Hmm..Deepika walks hand-in-hand with ex Ranbir Kapoor

Most Recent




Most Popular