Gratuity Amount not mentioned/shown in Form 16

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If your employer has failed to mention your gratuity payment and its exemption on your Form 16, you can still declare it when filing your Income Tax Return (ITR). The recommended approach is to report the gratuity amount under the 'Exempt Income' (EI) schedule. This avoids potential issues with the Income Tax Department, even if your employer refuses to issue a revised Form 16.

KRISHNA

KRISHNA (Querist)

11 June 2025 Dear Expert,

I was paid Gratuity for my employment (in August 2024), which does not reflect in Form 16 issued by employer for FY2024-2025. When asked the employer is not providing revised Form 16 to show the Gratuity Amount and the Exemption under Section 10(10).

Kindly let me know, how should I proceed ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 June 2025 You can fill it under Schedule 'Exempt Income'

Message likes : 1 times

KRISHNA

KRISHNA (Querist)

12 June 2025 Thanks Sir.. In ITR, do I first show the Gratuity Amount as Income from Salaries.. and then fill it under Schedule "Exempt Income" ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 June 2025 To declare it under schedule 'Salary', you need rectified form 16; so better declare it under schedule EI.

KRISHNA

KRISHNA (Querist)

13 June 2025 Since the employer does not want to provide revised Form 16 to reflect the Gratuity Amount paid, will declaring this amount in Schedule EI pose a problem .. IT dept sending a Notice ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 June 2025 No, as you would have declared the exempted income in ITR; along with coinciding form 16 data.

KRISHNA

KRISHNA (Querist)

15 June 2025 Sir.. that is the problem, the company has not stated the Gratuity amount in Form 16. In that case, how would it coincide with Form 16 data ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

15 June 2025 As the data in not included in form 16, and when the employer is not ready to rectify it, better to declare the income under schedule EI.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

27 September 2025 Good luck..

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