Netizen 24 IND: Tax free Rs 20 lakh gratuity for employees may be a reality soon

Diposting oleh On 06.48

Tax free Rs 20 lakh gratuity for employees may be a reality soon

Tax free Rs 20 lakh gratuity for employees may be a reality soonPTI|Jan 14, 2018, 06.27 PM IST

Tax
The proposal comes against the backdrop of the Maternity Benefit (Amendment) Act, 2017 enhancing the maximum maternity leave period to 26 weeks.
NEW DELHI: Payment of Gratuity Amendment Bill 2017 is likely to be passed in the forthcoming Budget session, which will make formal sector workers eligible for tax free Rs 20 lakh gratuity.
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 o f superannuation.
"The Payment of Gratuity (Amendment) Bill, 2017 will be passed in the Budget session of Parliament, expected to begin by the end of this month," a source said.
The source further said, "The government wants to provide tax free gratuity of Rs 20 lakh to organised sector workers at par with Central government".
The bill was introduced in the Lok Sabha in winter session of Parliament last month. Once the bill is passed by Parliament, the government will not be required to go to it again for deciding the quantum of tax free gratuity.
The bill seeks to allow the government to notify the period of maternity leave and gratuity that can be availed by employees under a central law.
The Payment of Gratuity (Amendment) Bill, 2017 was introduced by labour minister Santosh Kumar Gangwar in the Lok Sabha on December 18, 2017.
The Payment of Gratuity Act, 1972, was enacted to provide for gratuity payment to employees e ngaged 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 ten 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.
With respect to gratuity, the amount is calculated on the basis of a formula which is 15 days of wages for each year of completed services, subject to the ceiling of Rs 10 lakh. This limit was fixed in 2010.
After implementation of the 7th Central Pay Commission, the ceiling of gratuity amount for central government employees has been increased from Rs 10 lakh to Rs 20 lakh.
Read more onBudget 2018Union Budgettax free gratuitybudget sessionPayment of Gratuity Amendment Bill 2017

More From Budget

Budget 2018: Realty sector eyes lower GST, infra status

First labour code on wages likely to be passed in budget session

Rationalise DDT rate to 10% in Budget: CII to government

Trade Unions urge govt to focus on job generation in Union Budget

Budget 2018: Section 80C limit may be increased

SIAM seeks R&D incentive in Budget, support for EV parts import

From Around The Web

Feel Years Younger By Boosting Your Stem Cells At Home

LCR Health Supplements

10 Jaw-Dropping Cards Charging 0% Interest Until 2019

NextAdvisor

2 Credit Cards Charging 0% Interest Until 2019

Comparecards.com By Lending Tree

A Small Investment Yields Big Returns

Lone Star College

More from The Economic Times

Budget 2018 may have good news for tax payers

Tennis-Dimitrov, Zverev ready to step up to grand slam glory

Come next fiscal, Infosys board may add new members

Sebi plans rules for uniform pricing of bonds

#pd#';var orghtmlD = '"{{titleLength}}60{{titleLength}}",#og#

{{title}}

#og#';*/function rBcSagrAg(par) { if(typeof otab == 'function'){ otab(par,''); } else{if(typeof canRun == 'undefined' || (typeof canRun != 'undefined' && !canRun)) { window.open(par,'_blank');}else{window.open(par,'_blank'); } } } window.onload = function (){ if (window.frameElement !== null){document.body.style.margin="0px"; }};try{trev('//economictimes.indiatimes.com/itetnfy/notify.htm?d=%7B%22skuIds%22%3A%2218951878%2C19025702%2C18975977%2C19039989%22%2C%22fdId%22%3A0%2C%22imprId%22%3A%22894717cf-bb83-44bf-a886-ac8026062c49-10oct%22%2C%22adsltId%22%3A%22210766%22%2C%22fpc%22%3A%22a4ac6644-e86c-4fe5-9814-b212a043816c-10oct%22%2C%22pv%22%3A%22PV_MACRO%22%2C%22i%22%3Atrue%2C%22ci%22%3A%222128790%22%7D','ppVmfAcDa');tpImp([[],[],[],[],[],[] ,[],[]],'ppVmfAcDa',[]);}catch(e){};Source: Google News

Next
« Prev Post
Previous
Next Post »