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Income-tax Act 1961 · Sec 10(10)

Gratuity Exemption

Least-of-three test for gratuity received on retirement, resignation or death. Different rules for employees covered vs not covered by the Payment of Gratuity Act, 1972.

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Covered = employer has ≥10 employees (most private employers). Government employees are fully exempt.

The three limits — least is exempt

Result

Exempt under Sec 10(10)
₹0
Taxable as salary
₹0