Gratuity and Leave encashment failed with error

Hi Mahesh,

You're right that Section 10(10) (exemption on gratuity) has an upper limit of ₹20 lakhs (₹2,000,000), and Section 10(10AA) (leave encashment for non-government employees) has an exemption limit of ₹3 lakhs for AY 23-24.

Common Reasons for E-filing Error on Gratuity Exemption:

1. Mismatch in Data Entered:

   • The portal expects the exact exemption amount, not just that gratuity is less than the limit.

   • If your gratuity received is say ₹19,99,999 but exemption entered is more than that or incorrect, portal throws error.

2. Format of Entry:

   • Sometimes the portal requires the exemption amount in whole numbers without commas or decimals.

   • Check the input format, remove commas, spaces.

3. Gratuity Amount vs Exemption Claimed:

   • Ensure that exemption claimed ≤ gratuity received and ≤ ₹20,00,000.

   • If exemption claimed is mistakenly more than ₹20 lakhs, portal will reject.

4. Leave Encashment Limit:

   • For leave encashment (Section 10(10AA)), max exemption is ₹3,00,000.

   • Make sure this limit is not crossed and correctly entered.

5. Update & Refresh Portal:

   • Sometimes portal glitches cause such errors.

   • Try clearing cache, using updated browser, or wait and try later.

What You Can Do:

• Double-check the exact figures entered under gratuity exemption and leave encashment exemption.

• Make sure no commas or special characters in numbers.

• Ensure exemption ≤ actual received and within limit.

• Cross verify Form 16 / employer certificate for exact gratuity amount.

• If error persists, reach out to Income Tax helpdesk with screenshot for portal issue.