Centre clears bill to double tax-free gratuity limit to â¹20L
The Centre has approved an amendment bill that seeks to double tax-free gratuity ceiling for private and public sector employees to â¹20 lakh. The present upper ceiling on this amount under Payment of Gratuity Act, 1972, which applies to establishments employing 10 or more persons, is â¹10 lakh. Notably, the act aims to provide social security to people after retirement.