Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQs on Payment of Gratuity Act 1972

1. Under the Payment of Gratuity Act, 1972 the maximum gratuity payable is
(a) Rs. 10 lakhs
(b) Rs. 8 lakhs
(c) Rs. 5 lakhs
(d) Rs. 3.5 lakhs



2. What is the qualifying service to claim gratuity?
(a) 15 years
(b) 10 years
(c) 5 years
(d) No such prescription




3. The eligibility condition for obtaining gratuity under the Payment of Gratuity Act, 1972 is
(a) Completion of 2 years of Service
(b) Completion of 3 years of Service
(c) Completion of 4 years of Service
(d) Completion of 5 years of Service




4. The maximum amount of gratuity has now been enhanced to Rs. 10 lakhs from
(a) 2.5 lakhs
(b) 3.5 lakhs
(c) 5 lakhs
(d) 7.5 lakhs



5.  Payment of Gratuity Act, 1972 is applicable to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishment in a State, in which --------- persons are or were employed on any day in the preceding 12 months.  
(a) 10 or more persons
(b) 10
(c) 10 or more persons
(d) 20



6.For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of -------- days’ wages based on the rate of wages last drawn by the employee concerned
(a) 25 days
(b) 15 days
(c) 30 days
(d) 7 days



7.In the case of a monthly rated employee, the fifteen days’ wages shall be calculated by dividing the monthly rate of wages last drawn by him by ----------- and multiplying the quotient by fifteen.
(a) 30
(b) 15
(c) 26
(d) 25



8.In the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of --------days’ wages for each season.
(a) 14 days
(b) 15 days
(c) 10 days
(d) 7 days



9.The employer shall arrange to pay the amount of gratuity within --------- days from the date it becomes payable.
(a) 30 days
(b) 15 days
(c) 60 days
(d) 75 days



10. Appeal on the decision of controlling authority should be preferred within --------- days from the date of the order
(a) 30 days
(b) 60 days
(c) 15 days
(d) 75 days



11.The formula for calculating gratuity is 
(a) Gratuity = (Monthly Salary/25) X 15 X No. of years of service
(b) Gratuity = (Monthly Salary/30) X 15 X No. of years of service
(c) Gratuity = (Monthly Salary/26) X 15 X No. of years of service
(d) Gratuity = (Monthly Salary/15) X 15 X No. of years of service


12. Which of the following is wrong statement 
(a)No gratuity payable under the Act shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.
(b)The Payment of Gratuity (Amendment) Act, 1987 has prescribed provisions for compulsory insurance for employer’s liability for payment towards the gratuity under the Act from the Life Insurance Corporation of India or any other prescribed Insurer. 
(c)Once the Payment of Gratuity Act becomes applicable to the establishment, a notice in Form ‘A’ has to be given by the employer to the controlling authority within 30 days. Notice in Form ‘B’ is to be given to the controlling authority within 30 days of any change in name, address, employer or nature of business. If an employer proposes to close down the business, he shall submit a notice in Form ‘C’ to the Controlling Authority at least 60 days before the intended closure.
(d) This act is not applicable to public charitable and religious trusts 



13.For avoiding any payment knowingly makes any false statement or representation shall be punishable with 
(a) imprisonment upto 3 months or fine upto Rs. 10,000/- or both
(b) imprisonment upto 6 months or fine upto Rs. 10,000/- or both
(c) imprisonment upto 3 months or fine upto Rs. 20,000/- or both
(d) imprisonment upto 6 months or fine upto Rs. 20,000/- or both



14.Failure to comply with any provision of the Act or Rules shall be punishable with 
(a) imprisonment upto 1 year or with fine extend upto Rs. 10,000/-  or with both
(b) imprisonment upto 1 year or with fine extend upto Rs. 20,000/-  or with both
(c) imprisonment upto 2 year or with fine extend upto Rs. 20,000/-  or with both
(d) imprisonment upto 2 year or with fine extend upto Rs. 50,000/-  or with both


15. Which section deals with the determination of the amount of gratuity
(a) Section 10
(b) Section 8
(c) Section 7
(d) Section 9

6 comments:

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  3. for question no. 13 the right ans is B

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    Replies
    1. You are right man, otherwise ye to kuchh bhi .....

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  4. Wow, this blog is so informative. I want to be self-taught financial planner and have been learning things online. Recently was reading about gratuity rules and was wondering how to calculate gratuity payment. I think these questions and answers are going to be useful for me.

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