DEATH CUM RETIREMENT GRATUTY

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Death Cum Retirement Gratuity (DCRG) is a lump sum paid upon retirement or death after at least five years of service. It's calculated based on last pay and years of service, with a current cap of ₹25 lakh for most employees. Gratuity received is generally tax-exempt under Section 10(10) of the Income Tax Act, with any amount exceeding ₹20 lakh being taxable. Recent updates also extend gratuity eligibility to UPS subscribers.

raghavendra b

raghavendra b (Querist)
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01 June 2024 DEAR SIR,

ONE OF MY CLIENT RECEIVED DEATH CUM RETIRED GRATUTY AMOUNT RS 13,21,620/- PREVIOUS YEAR THE AMOUNT TREATED AS A SALARY IS COMPLETELY EXEMPTED U/S 10(10).

REGARDS

Jaspal Singh

Jaspal Singh (Expert)
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02 June 2024 you have to do necessary calculation as per coverage of your employer in gratuity act

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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15 August 2025 1. What is DCRG and how is it calculated?
It is a one-time lump sum paid to a government servant or their legal heirs upon retirement or death (minimum 5 years of qualifying service). The calculation: ¼ of last pay (emoluments) for each completed half-year of service, capped at 16½ times the emoluments
pension.mp.gov.in
Legitquest
.
2. Tax Treatment:
Gratuity received due to retirement or death is exempt under Section 10(10) of the Income Tax Act. If the amount exceeds ₹20 lakh, only the excess portion is taxable. Relief may be claimed under Section 89, with Form 10E being required
clearconsultancy
.
3. Latest Update for UPS Subscribers:
Government employees under the Unified Pension Scheme (UPS) are now eligible for gratuity similar to OPS, in addition to the existing lump-sum payment (10% of emoluments per half-year of service). The gratuity cap is now enhanced to ₹25 lakh

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