Gratuity now tax-free up to Rs 20 Lakh

New Delhi: Parliament on Thursday passed Payment of Gratuity (Amendment) Bill 2017 paving the way for doubling the limit of tax free gratuity to Rs 20 lakh and empowering the government to fix the ceiling of the retirement benefit through an executive order.

The Rajya Sabha passed the Bill, which was approved by the Lok Sabha last week. The Bill will also empower the Central government to fix the period of maternity  leave through executive order.