LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Gratuity Exemption Error while filing ITR-2

Gururaj Bhat (Engineer) (43 Points)

16 July 2023

I received gratuity of about 8 Lakhs from my previous employer and AFAIK it is completely Tax free (I work in IT domain).

This information (about me receing gratuity and it being Tax exempted) has been prepopulated in the Income Tax portal while e-filing returns.

So I diligently claimed this as exemption and added the breakup of the salary in Salary as per section 17(1) to include gratuity component seperately so that this component can be treated seperately.

But while validating ITR I get the error that the claimed amount is more than the specified in Salary.

Attached is the screenshot.

Let me know if someone faced same issue with gratuity

Reply
Follow
Share

10 Replies

CA Aakarsh Jain (CA) (10216 Points)
Replied 16 July 2023

Hi, I am unable to see the attached file. Please check the details in your inbox to discuss further details.

E Cherian (Engineer) (16 Points)
Replied 17 July 2023

I have the same issue. The amount (9L) claimed under exemption 10(10) is the same as the amount shown below salaries 17(1) under subhead Gratuity.

Yet, the following error shows.

ITR validation error: "Exemption u/s 10(10) for gratuity shall not exceed income offered under the head salary under sub head gratuity receipt and cannot exceed Rs20 lakhs"

1 Like

Vinod A S (19 Points)
Replied 19 July 2023

Hi, I am also getting the ITR validation error: "Exemption u/s 10(10) for gratuity shall not exceed income offered under the head salary under sub head gratuity receipt and cannot exceed Rs20 lakhs" while submitting ITR2.

It is not even allowing me to put a bare minimum amount of Rs.1

I already filed a grievance in the IT Website and they promptly replied advising to put "Gratuity" breakup under 17(1). But even with that also error is not resolved.

Looks like a bug in the IT filing Web application related to ITR2.

You may also please file a grievance so that IT department will look in to this matter.

2 Like

Gururaj Bhat (Engineer) (43 Points)
Replied 19 July 2023

@ Vinod A S

Yes I have written to ITR.helpdesk @ incometax.gov.in explaining the problem already.

I got the same reply as you asking to give the breakup in salary including gartuity , which I already had done.

Howewer I noticed that if I fill ITR-2 using excel utility and do the validation this error is not seen and I am able to generate JSON file using excel utility and I am planning to submit this JSON file in ITR site.

If lucky we may not encounter this error while submitting JSON file in ITR website.

1 Like

Chaitanya (CA Job) (27 Points)
Replied 19 July 2023

Try Offline Utility.

1 Like

Manoj (PM) (44 Points)
Replied 20 July 2023

This is a work around for the gratuity issue. Please remove the gratuity amount from exemption from initial screen. Claim the exemption in schedule salary itself - by using "Any Other " under exemption option and in the descripttion field you can mention the descripttion of exemption as mentioned earlier.

1 Like

E Cherian (Engineer) (16 Points)
Replied 21 July 2023

Update: Issue resolved. I was able to file using the offline utility.

Got this suggestion from ITR helpdesk: Delete all the temporary files from your system, clear the cache memory and the cookies . How to delete the cache files and cookies? Press ‘Ctrl + Shift + Delete’ > check the cookies and cache > Click OK Retry now.

Didn't try this, but might also work.

1 Like

pamelaleo10 (norton) (38 Points)
Replied 21 July 2023

I have the same issue. The amount (9L) claimed under exemption 10(10) is the same as the amount shown below salaries 17(1) under subhead Gratuity. Yet, the following error shows.