TaxTMI 
TaxTMI 
TaxTMI 
Sir
what is the gratuity limit for psu employees for assessment year 2018-19 i.e. 10 lacs or 20 lac. under income tax act.
pls guide.
gratuity limit for psu employees
satbir singhwahi
Gratuity Limit for PSU Employees Confirmed at Rs. 20 Lakhs for 2018-19 Under Income Tax Act The discussion focuses on the gratuity limit for PSU employees for the assessment year 2018-19, questioning whether it is Rs. 10 lakhs or Rs. 20 lakhs under the Income Tax Act. Two replies confirm that the limit is Rs. 20 lakhs. The Central Government increased the tax-free gratuity ceiling from Rs. 10 lakhs to Rs. 20 lakhs for private sector employees, reflecting inflation and wage increases. The amendment, approved by Parliament, allows the government to adjust the ceiling via executive order. The Payment of Gratuity Act mandates a minimum of five years of service for eligibility and applies to establishments with at least 10 employees. (AI Summary)