Article

Indian Government notifies the Payment of Gratuity (Amendment) Act, 2018; Gratuity ceiling raised to INR 2 million

Global Tax Update : May 2018 / India

At present, private sector employees covered under the Payment of Gratuity Act, 1972 (the Act) with five or more years of continuous service, are eligible for gratuity computed as per the provisions of the Act, subject to ceiling of INR 1 million upon retirement, resignation or on superannuation.

This newsletter explains the following topics;

  1. Indian Government notifies1  the Payment of Gratuity (Amendment) Act, 2018; Gratuity ceiling raised to INR 2 million
  2. No Permanent Establishment (PE) exposure for foreign company on secondment of employees2
  3. Goods and Service tax developments
  4. Clarification on clubbing of investment limits of foreign government/ foreign government related entities – Foreign Portfolio Investments (FPI) update

1. Published in The Gazette of India Notification S.O.1419( E ) dated 29th March 2018 Notification S.O.1420( E ) dated 29th March 2018 Notification S.O.1421( E ) dated 29th March 2018
2. Samsung Electronic case – Delhi Income-tax Appellate Tribunal (ITAT)

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>> Click for Japanese [インド政府は2018年退職金支払法(改正)を発表:退職金の上限を200万ルピーに引上げ ほか]

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* This Article is based on the relevant Japanese or specific country’s tax law and other authorities in effect on the date of this Article. This Article would not be guaranteed updating if there are any changes in Japanese tax law, any other law, or interpretations by the courts or tax authorities thereof after the date of this Article.

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