#gratuity limit

Tax Treatment of Income from Salary in Brief

1. Income under the head Salaries

1.1 Salary is defined to include:

a) Wages

b) Annuity

c) Pension

d) Gratuity

e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages

f) Advance of Salary

g) Leave Encashment

h) Annual accretion to the balance of Recognized Provident Fund (more…)

Gratuity – Legal Provisions and Taxation

Esha Agrawal

Job-hopping can increase your pay, but good old loyalty also has its perks. Stay on with your employer for five years or more, and you are entitled to gratuity when you resign, retire or are retrenched.

Going by the book:-

Gratuity is a reward for long and meritorious service.

In 1972 the government passed the Payment of Gratuity Act that made it mandatory for all employers with more…