(10.1) When will the gratuity withheld at the time of retirement be released?
sub-rule (5) of CCS(Pension) Rules, 1972, the retiring Government
employees, shall be paid immediately on production of “No Demand
Certificate” from the Directorate of Estates after actual vacation of
the Government accommodation.
that “No Demand Certificate” shall be given to the Government employee
within a period of fourteen days from the actual date of vacation of the
Government accommodation and the allottee shall be entitled to payment
of interest (at the rate applicable to General Provident Fund deposit
determined from time to time by the Government of India) on the excess
withheld amount of gratuity which is required to be refunded., after
adjusting the arrears of licence fee and damages, if any, payable by the
allottee and the interest shall be payable by the Directorate of
Estates through the concerned Accounts Officer of the Government
employee from the actual date of vacation of the Government
accommodation up to the date of refund of excess withheld amount of
(10.2) Whether retirement gratuity/death gratuity, commuted value of the pension is taxable?
(10.3) Is there any ceiling on gratuities and if so what is the maximum amount admissible?
raised to Rs.ten lakhs w.e.f 01.01.2006 (earlier the limit was Rs.3.5
lakhs). DA admissible on the date of retirement is also to be added with
pay for calculation of gratuity.
(10.4) Whether retirement gratuity, death gratuity can be paid by PAO/CPAO?
gratuity as determined by the PAO shall be intimated to the Head of
Office who will draw and disburse the amount to the retired Government
servant or to the nominee/family as the case may be.
(10.5) Whether 10% gratuity or whole of the Gratuity is to be withheld at the time of retirement of all Government Servants?
No. The Administrative Deptt/Accounts Officer shall not withhold any gratuity unless the Head of Office
a) Enclose instructions received from Directorate of Estate for withholding of 10% gratuity for outstanding license fee.
(10.6) What all are dues recoverable from retirement gratuity?
assessed by the Head of Office which remain outstanding on the date of
retirement shall be adjusted against the amount of retirement Gratuity.
The term Government dues includes dues pertaining to Government
accommodation including arrears of license fee as well as damages for
occupation of the Government accommodation beyond the permissible period
after the date of retirement, if any. Government dues also includes
balance of house building advance, conveyance, or any other advance,
overpayment of pay and allowance or leave salary and arrears of TDS etc.
(10.7) If the nominee for death gratuity is a minor, how will be the gratuity paid?
member of the family, it shall be payable to the guardian on behalf of
the minor. In the case of absence of a natural guardian, the death
gratuity to the extent of 20% or Rs.1.50 lakhs shall be paid to the
guardian, without production of a guardianship certificate, but subject
to production of an indemnity bond with suitable sureties. The balance
amount shall be paid to the guardian on production of a guardianship
(10.8) When the retirement gratuity be withheld by the Government?
retirement if any disciplinary/judicial proceedings are instituted
against the Government servant before his retirement. The gratuity in
such cases will be withheld till the conclusion of the
departmental/judicial proceedings and issue of final orders thereon.
Department/Accounts Officer receives instructions from Directorate of
Estates to withhold 10% gratuity for outstanding license fee/damages in
respect of the Government accommodation.
(10.9) What action is required
to be taken when gratuity is withheld on account of continuing
disciplinary proceedings/judicial proceedings and when these payments
will be paid?
right of withholding a pension or gratuity or both either in full or in
part or withdrawing a pension in full or in part, whether permanently or
for a specified period and of ordering recovery from a pension or
gratuity of the whole or part of any pecuniary loss caused to the
Government, if, in any departmental or judicial proceedings, the
pensioner is found guilty or grave misconduct or negligence during he
period or service, including service rendered upon re-employment after
retirement. When the Government servant is exonerated fully after the
departmental/judicial proceedings, gratuity shall be paid after issue of
the final orders. When the Government servant/pensioner is found
guilty, Government will issue orders for regulation of gratuity.
(10.10) Whether interest is
payable for delayed payment of gratuity and what is the rate of interest
applicable in these cases of delayed payment of gratuity?
its permissible period, interest at the rate of interest rate
applicable to GPF deposits is required to be paid along with gratuity.
In every case of delayed payment of gratuity shall be considered by the
Secretary of the Administrative Ministry/Department and if the delay is
due to administrative delay, Secretary of the Administrative
Ministry/Department will sanction payment of interest. In all case where
interest has been sanctioned by the Secretary of the Administrative
Ministry/Department, such Ministry/Department shall fix the
responsibility and take disciplinary action against the Government
servant or servants who are found responsible for the delay in the
payment of gratuity.
F.7 When will the gratuity withheld at the time of retirement be released?
F.8 Whether retirement gratuity/death gratuity, commuted value of the pension is taxable?
F.9 Is there any ceiling on gratuities and if so what is the maximum amount admissible?
F.10 Whether retirement gratuity, death gratuity can be paid by PAO/CPAO?
F.11 Whether 10% gratuity or whole of the Gratuity is to be withheld at the time of retirement of all Government Servants?
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