Explanation:

Under the Payment of Gratuity Act, 1972, the maximum amount of gratuity payable to employees has been revised over the years to reflect changes in economic conditions and to provide a fair benefit to retiring employees:

- Option 1: Rs. 5,00,000 - This was the limit in earlier years but is outdated.

- Option 2: Rs. 10,00,000 - Previously the maximum limit, but it has been increased.

- Option 3: Rs. 15,00,000 - Surpassed by further legislative changes.

- Option 4: Rs. 20,00,000 - Currently the correct maximum amount of gratuity payable as per the revised limits under the Payment of Gratuity Act, 1972. Correct Answer