alleryStart learning →What maximum gratuity does Section 4(3) fix?
ARs 20,00,000
BRs 10,00,000
CRs 5,00,000
DRs 15,00,000
Answer & Solution
Correct answer: A. Rs 20,00,000
The ceiling on gratuity payable is fixed at Rs 20,00,000, and any excess paid is taxable in the employee's hands.
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