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Gratuity Exemption Error while filing ITR-2

ITR Filing 6049 views 13 replies

I received gratuity of about 8 Lakhs from my previous employer and AFAIK it is completely Tax free (I work in IT domain).  

This information (about me receing gratuity and it being Tax exempted) has been prepopulated in the Income Tax portal while e-filing returns.  

So I diligently claimed this as exemption and added the breakup of the salary in Salary as per section 17(1) to include gratuity component seperately so that this component can be treated seperately.

But while validating ITR I get the error that the claimed amount is more than the specified in Salary.

Attached is the screenshot.

Let me know if someone faced same issue with gratuity


Attached File : 3909416 20230716222100 screenshot 2023 07 16 095652.jpg downloaded: 131 times
Replies (13)
Hi, I am unable to see the attached file. Please check the details in your inbox to discuss further details.

I have the same issue. The amount (9L) claimed under exemption 10(10)  is the same as the amount shown below salaries 17(1) under subhead Gratuity. 

Yet, the following error shows.

ITR validation error: "Exemption u/s 10(10) for gratuity shall not exceed income offered under the head salary under sub head gratuity receipt and cannot exceed Rs20 lakhs"

 

Hi, I am also getting the ITR validation error: "Exemption u/s 10(10) for gratuity shall not exceed income offered under the head salary under sub head gratuity receipt and cannot exceed Rs20 lakhs" while submitting ITR2.

It is not even allowing me to put a bare minimum amount of Rs.1

I already filed a grievance in the IT Website and they promptly replied advising to put "Gratuity" breakup under 17(1). But even with that also error is not resolved.

Looks like a bug in the IT filing Web application related to ITR2.

You may also please file a grievance so that IT department will look in to this matter.
 

@ Vinod A S

Yes I have written to ITR.helpdesk @ incometax.gov.in explaining the problem already.

I got the same reply as you asking to give the breakup in salary including gartuity , which I already had done.

Howewer I noticed that if I fill ITR-2 using excel utility and do the validation this error is not seen and I am able to generate JSON file using excel utility and I am planning to submit this JSON file in ITR site.

If lucky we may not encounter this error while submitting JSON file in ITR website.

Try Offline Utility.

This is a work around for the gratuity issue. Please remove the gratuity amount from exemption from initial screen. Claim the exemption in schedule salary itself - by using "Any Other " under exemption option and in the descripttion field you can mention the descripttion of exemption as mentioned earlier.

Update: Issue resolved. I was able to file using the offline utility.

Got this suggestion from ITR helpdesk: Delete all the temporary files from your system, clear the cache memory and the cookies . How to delete the cache files and cookies? Press ‘Ctrl + Shift + Delete’ > check the cookies and cache > Click OK Retry now.

Didn't try this, but might also work. 

I have the same issue. The amount (9L) claimed under exemption 10(10)  is the same as the amount shown below salaries 17(1) under subhead Gratuity.  Yet, the following error shows.

 

@ E Cherian,

The solution you have provided worked! I was able to file the ITR2 successfully after clearing the cache and cookies from the browser.

Thank you so much. Hope this will be helpful for others in the forum.

@ E Cherian,

Yes . this seems to work.

Only clearing Cache is enough , worked in my case.

Thanks a lot

I have similar issue for ITR 2 - Gratuty payment received and reflected in form 16 still getting error as below 

Hi Cherian

same error appearing this year while gratuity filing.

my auditor say cleaning cache didn't work...

Kindly advice 

Gratuity exemption under Section 10(10) goes in Schedule EI (Exempt Income) in ITR-2, not in the salary schedule. The exemption limit for private sector employees is Rs 20 lakh. A common error is entering the full gratuity in the salary total without netting off the exempt portion, or skipping Schedule EI entirely. In the ITR-2 utility, you also need to select the correct employer type (government vs. non-government) since government employees get full exemption under 10(10)(i) while private sector employees are capped at Rs 20 lakh under 10(10)(ii). If the utility is throwing a validation error, check whether the gross salary row includes the gratuity before exemption and whether you have filled EI correctly. This [gratuity calculation and tax exemption guide](https://taxgarden.in/blog/gratuity-calculation-tax-exemption-employer-guide-india-2026) covers the exemption limits and which schedule handles it in ITR-2.


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