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

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Quick Summary
This discussion explores whether gratuity received by legal heirs following an employee's death (death cum gratuity) is taxable. The consensus suggests that such payments are generally tax-free, even for substantial amounts like six crores. While Circular No. 573 is mentioned, the user is seeking further clarification on other applicable sections or circulars that confirm this tax-free status.

Yes it will be tax free in the hands of legal heir.

Can you please help me with the section or circular (other than Cir.573) applicable in this case

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