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Gratuity component in CTC exempt from Tax

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Ria

Student

70 Points Posted on 07 February 2023

Hello

My CTC has a gratuity component of approximately Rs. 17,000/- every month. Can I claim that as an exemption or deduction while filing ITR?

Or is gratuity only exempted when we receive it while leaving the company?

Replies (2)

Quick Summary

This discussion clarifies the tax treatment of gratuity components within your Cost to Company (CTC). While a monthly gratuity amount is included in your CTC, it is generally not exempt from tax at that stage. Tax exemption for gratuity typically applies only when you receive the lump sum amount upon retirement or leaving the company.