Taxability on Death cum Gratuity

Any amount received as Gratuity after the death of the employee i.e death cum gratuity by legal heirs or widow will be tax free or taxable?

It is to be noted that amount received as gratuity is nearly about Rs. SIX CRORES.

Will Circular no 573 - Income Tax dated 21-8-1990 will be applicable in the case where whole amount is received as Gratuity