Gratuity Section 10(10)

This discussion clarifies the taxability of gratuity for government employees. Gratuity is typically paid upon retirement or resignation, not during employment. Therefore, the question of whether gratuity received 'during employment' is exempt or taxable is moot, as it's not payable at that time. The exemption rules and calculation methods apply only to gratuity received at the point of cessation of employment.