Gratuity Amount

₹3.46 L

Tax Exempt (up to ₹20L)

Fully Exempt

No tax on gratuity

Taxable Amount

₹0

Calculation Breakdown
Formula(Salary × 15 × Years) / 26
Last Drawn Salary₹60,000/month
Years of Service10 years
Exemption Limit₹20,00,000
Gratuity Amount₹3,46,154
Gratuity = (Last Drawn Salary × 15 × Years of Service) / 26. Under Section 10(10), gratuity up to ₹20,00,000 is exempt from tax for private sector employees. The exemption is available once in a lifetime.