Gratuity Act came into force on 16th October, 1972.
Gratuity means gift or present in return of service provided.
Applicable to all concerned (public or private) where there are 10 or more employees.
Payable only after service of continuous 5 years without interruption.
Maximum amount is 20 lacs. If more than this limit ( deduction only on 1st 20 lacs )
Gratuity cannot be given during period of service. If given fully taxable for all employees irrespective of public or private.
For seasonal establishment, 7 days will be considered instead of 15 days.