Gratuity

apart from gratuity remaining amount I.e. rs. 9 lakhs will be taxable and if he works with PSU then I don't think 20 lakhs limit will zbe applicable on him. in case of govt employees full amount of gratuity is exempt.

ASCERTAIN THE NATURE OF 9 LAKHS (EXCLUDING 17 LAKHS ) . MOREOVER 2O LAKHS IS NOT THE MINIMUM LIMIT. AMONG THE CRITERIA, 20 LAKHS IS ONE OF THE CRITERIA

Last salary (basic + DA)* number of years of employment* 15/26;
20,00,000 (which has been hiked from Rs. 10 Lakh as per the amendment);
Gratuity Actually received

LEAST AMONG THE 3 IS EXEMPTED

If gratuity received is less than Rs 20 Lakhs, the whole of the gratuity received is tax free

If gratuity received is more than Rs 20 Lakhs, the difference above Rs 20 lakhs is taxable, Rs 20 Lakhs will remain tax free.