Why Gratuity showing as Taxable Income in my ITR1?

Hello,

I have worked with IBM India for 10 years and resigned in Aug 2021. My last basic salary was Rs. 78,000. I received a gratuity of around 4.5 lakhs. 

Now, when I am trying to file ITR1, this gratuity is included in my Gross Salary. 

Can you please suggest if the gratuity will be taxable? If not, how to get this corrected?

Thanks a lot in advance!

Replies (3)
Quick Summary
A user is seeking clarification on why their gratuity payment is being shown as taxable income in their ITR1 filing, despite having worked for 10 years with their employer. They received a gratuity of approximately 4.5 lakhs after resigning from IBM India. The discussion suggests checking Form 16 and contacting the employer, as gratuity is generally not taxable after 10 years of service and should be declared under exempted income in the ITR.

Needs to be checked your form 16?

Contact your employer if its added to your taxable salary?

 

The employer provided 2 Form 16. One for the income and other for the Gratuity. 

But why it is added in taxable income?

When you have worked 10 years in the organization the gratuity is not taxable.

While filing ITR declare it in schedule Exempted Income.

In case of any query, declare the amount received as gratuity.

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