Tax on Gratuity

This discussion clarifies the tax implications of receiving gratuity in the UK. It addresses whether gratuity received in June 2020 is subject to tax and needs to be declared in the next Income Tax Return (ITR) for FY20-21. The current exemption limit for gratuity is £20 lakh for non-government employees, with a lower limit of £10 lakh for those not covered by the Payment of Gratuity Act 1975.