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Gratuity amount excess the exemption limit

This query is : Resolved 

Dear Sir ,
A person received Gratuity amount more then exemption limit of payment under gratuity act 1972 i.e 15 days of every year ,
company has paid 20 days per year gratuity
can excess amount over and above the exemption we claim relief us 89 (1) .



No. The maximum exemption allowed u/s. 10(10) of Rs. 20 lakhs, can only be claimed on superannuation.

A person received Gratuity amount more then exemption limit of payment under gratuity act 1972 i.e 15 days of every year , company has paid 20 days per year gratuity can excess amount over and above the exemption we claim relief us 89 (1) .


The least of the following is exempt from tax:

1. Last salary (basic + DA)* number of years of employment* 15/26;
2. Rs. 20 lakhs (which has been hiked from Rs. 10 Lakh as per the amendment);
3. Gratuity Actually received.
Based on changing data, verify among these 3 options, and claim whichever is least.



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