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
08 May 2018 
2 Replies 
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Tax-free gratuity ceiling increased and government empowered to change the limit by executive order for employee benefits.
The tax-free gratuity ceiling for private-sector employees has been raised and the amendment authorises the central government to vary the tax-free gratuity ceiling by executive order. The Payment of Gratuity Act applies to establishments with not less than ten employees and requires a minimum of five years' service to qualify for gratuity; the amendment also fixes a maternity leave period for female employees. (AI Summary)
The tax-free gratuity ceiling for private-sector employees has been raised and the amendment authorises the central government to vary the tax-free gratuity ceiling by executive order. The Payment of Gratuity Act applies to establishments with not less than ten employees and requires a minimum of five years' service to qualify for gratuity; the amendment also fixes a maternity leave period for female employees. (AI Summary)