Gratuity received on retirement, resignation, or death may be exempt up to the limit notified under Section 10(10) depending on whether the employer is covered under the Gratuity Act.
Key points
- Verify years of continuous service eligibility
- Compute exempt vs taxable gratuity before filing ITR
- Reconcile Form 16 Part B with gratuity certificate
- Coordinate with leave encashment and pension components
