<b>Your money:</b> Higher tax-free gratuity to benefit senior employees

The limit for tax-free gratuity payment to employees has been revised to Rs 20 lakh

Salaried employees in the private sector may soon be able to enjoy up to Rs 20 lakh tax-free gratuity. The Labour Ministry has proposed an amendment to Payment of Gratuity Act following a meeting with the central trade unions. The amendment is likely to be passed by the government by April. This proposal will bring private-sector employees at par with those in the government and public sector undertakings. Increasing the tax-free gratuity to Rs 20 lakh was one of the recommendations of the Seventh Pay Commission.
 
Gratuity is one benefit enjoyed by salaried employees, the other being the Employees