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What is the maximum limit as per Payment of Gratuity Act

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What is the maximum limit as per Payment of Gratuity Act 1972..

Answer / r.v.subrahmanyam

Rs. 3,50,000/-

Is This Answer Correct ?    21 Yes 12 No

What is the maximum limit as per Payment of Gratuity Act 1972..

Answer / sunny

And the answere given by Mr. R.v.subrahmanyam is right but
for claiming income tax exemption........

Is This Answer Correct ?    8 Yes 3 No

What is the maximum limit as per Payment of Gratuity Act 1972..

Answer / t. baburaj

The maximum limit as per the last amendment is Rs. Ten lakh.

Is This Answer Correct ?    5 Yes 0 No

What is the maximum limit as per Payment of Gratuity Act 1972..

Answer / sunny

there is no any such maximum or minimum limit but there is a
direct formula given by law maker mentioned u/s 4 of payment
of gratuity act..u can go through the following extract to
know all...

is eligible(mentioned under section 2A) for payment of
gratuity under this Act or any person authorised, in
writing, to act on his behalf shall send a written
application to the employer, within such time and in such
form, as may be prescribed, for payment of such gratuity.

(2) As soon as gratuity becomes payable, the employer shall,
whether an application referred to in sub-section (1) has
been made or not, determine the amount of gratuity and give
notice in writing to the person to whom the gratuity is
payable and also to the controlling authority specifying the
amount of gratuity so determined.

(3) The employer shall arrange to pay the amount of gratuity
within thirty days from the date it becomes payable to the
person to whom the gratuity is payable.

(3A) If the amount of gratuity payable under sub-section (3)
is not paid by the employer within the period specified in
sub-section (3), the employer shall pay, from the date on
which the gratuity becomes payable to the date on which it
is paid, simple interest at such rate, not exceeding the
rate notified by the Central Government from time to time
for repayment of long-term deposits, as that Government may,
by notification specify : Provided that no such interest
shall be payable if the delay in the payment is due to the
fault of the employee and the employer has obtained
permission in writing from the controlling authority for the
delayed payment on this ground.

(4) (a) If there is any dispute as to the amount of gratuity
payable to an employee under this Act or as to the
admissibility of any claim of, or in relation to, an
employee for payment of gratuity, or as to the person
entitled to receive the gratuity, the employer shall deposit
with the controlling authority such amount as he admits to
be payable by him as gratuity.

(b) Where there is a dispute with regard to any matter or
matters specified in clause (a), the employer or employee or
any other person raising the dispute may make an application
to the controlling authority for deciding the dispute.

(c) The controlling authority shall, after due inquiry and
after giving the parties to the dispute a reasonable
opportunity of being heard, determine the matter or matters
in dispute and if, as a result of such inquiry any amount is
found to be payable to the employee, the controlling
authority shall direct the employer to pay such amount or,
as the case may be, such amount as reduced by the amount
already deposited by the employer.

(d) The controlling authority shall pay the amount
deposited, including the excess amount, if any, deposited by
the employer, to the person entitled thereto.

(e) As soon as may be after a deposit is made under clause
(a), the controlling authority shall pay the amount of the
deposit - (i) to the applicant where he is the employee; or

(ii) where the applicant is not the employee, to the nominee
or, as the case may be, the guardian of such nominee or heir
of the employee if the controlling authority is satisfied
that there is no dispute as to the right of the applicant to
receive the amount of gratuity.

(5) For the purpose of conducting an inquiry under
sub-section (4), the controlling authority shall have the
same powers as are vested in a court, while trying a suit,
under the Code of Civil Procedure, 1908 (5 of 1908), in
respect of the following matters, namely :- (a) enforcing
the attendance of any person or examining him on oath;

(b) requiring the discovery and production of documents;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examination of witnesses.

(6) Any inquiry under this section shall be a judicial
proceeding within the meaning of sections 193 and 228, and
for the purpose of section 196, of the Indian Penal Code,
1860 (45 of 1860).

(7) Any person aggrieved by an order under sub-section (4)
may, within sixty days from the date of the receipt of the
order, prefer an appeal to the appropriate Government or
such other authority as may be specified by the appropriate
Government in this behalf : Provided that the appropriate
Government or the appellate authority, as the case may be,
may, if it is satisfied that the appellant was prevented by
sufficient cause from preferring the appeal within the said
period of sixty days, extend the said period by a further
period of sixty days.

Provided further that no appeal by an employer shall be
admitted unless at the time of preferring the appeal, the
appellant either produces a certificate of the controlling
authority to the effect that the appellant has deposited
with him an amount equal to the amount of gratuity required
to be deposited under sub-section (4), or deposits with the
appellate authority such amount.

(8) The appropriate Government or the appellate authority,
as the case may be, may, after giving the parties to the
appeal a reasonable opportunity of being heard, confirm,
modify or reverse the decision of the controlling authority.


Is This Answer Correct ?    4 Yes 3 No

What is the maximum limit as per Payment of Gratuity Act 1972..

Answer / indu

the maximum limit of payment of gratuity in payment of
gratuity act 1972 is rs. 12000/- per person.

Is This Answer Correct ?    3 Yes 20 No

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