How to declare gratuity while filing income tax returns

If the gratuity of 1 lakh is exempt, you need to declare a net salary income of Rs. 2 lakh only in your ITR. as per 26AS, the amount shown is income under the head "salary" and not taxable salary. You need not worry about the difference beween that and the ITR figure as long as your claim for exempt gratuity is correct

Thank you for your reply Sir. I was little confused initially but now it seems ok.

And in any case if there is any discrepancy found then I belive individual still gets the time of two years after the last date of tax filing to correct it and there is no panalty for that. I read it on one of the blog.  

I will file my income tax accordingly.

1) In salary sheet fill salary  as 2 lakhs or whatever you actually got.

2)  Now in s,no 2 there is  "allowance exempt under section 10" 

   Under (iv) other allowances  mention 1 Lakh.  

     Gratuity comes under 10(10).

   I hope this is clear. 

Can anyone advice is gratuity income come under exempt income

Upto 10 lakhs - it is exempt  under section 10(10) 

Thank you alot for your help. I have filed my income tax.