Graduity exemption

This discussion clarifies how to report gratuity payments on Form 16 and for Income Tax Returns (ITR). It addresses a scenario where a client received part of their gratuity in FY 2019-20 and the balance in FY 2020-21. The consensus is that the exemption limit is up to £20 lakh, making the client's gratuity fully exempt. The advice suggests reflecting the received amount in Form 16 and deducting it to arrive at the gross salary, ensuring correct tax reporting.