Exemption under section 10(10)C & Gratuity

you can claim exemption under 10(10c) itself.. still there's no bar for claiming 89(1). however you can opt for any one of the above

Sir I am receiving Gratuity also, & can I claim both Gratuity as well 10(10)C

depending upon the nature of retirement receipts, exemptions are allowed under various sub sections under section 10. you can avail those exemptions

Retired on voluntary separation program(SYI) scheme

Section 10(10C)- Any Amount Received On Voluntary Retirement

 

Under Section 10(10C), any payment received by an employee at the time of his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of public sector company, a scheme of voluntary separation, is exempted being least of 4 amounts as mentioned below. This exemption shall be allowed if the employee voluntary retires from following bodies

A public sector company

Any other company

An Authority established under a Central, State or Provincial Act

A Local Authority

A Co-operative Society

A university established or incorporated under a Central, State or Provincial Act, or, an Institution declared to be a University under Section 3 of the University Grants Commission Act, 1956

Any Indian Institute of Technology within the meaning of Clause (g) of Section 3 of the Institute of Technology Act, 1961;

Such Institute of Management as the Central Government may by notification in the Official Gazette, specify in this behalf.

Any State Government ; or

The Central Government.

It may also be noted that where this exemption has been allowed to any employee for any assessment year, it shall not be allowed to him for any other assessment year. The exempton of amount received under VRS has been extended to employees of the Central Government w.e.f. Assessment year 2002-03 and State Government employees w.e.f. Assessment year 2001-02.

It shall be exempted up to least of following :

Statutory Limit ` 5,00,000.

Three months salary for every completed year of service.

Salary for number of months remaining service [i.e. number of months to be counted from the month of voluntary retirement to the month of actual retirement]

Actual amount received.