Gratuity Statutory Exemption Calculator
Compute tax-exempt gratuity and taxable surplus under the Payment of Gratuity Act 1972 (15/26 formula) for covered and non-covered employees up to the statutory ₹20 Lakh ceiling.
SEC 10(10) & GRATUITY ACT•Statutory ₹20L Ceiling
All CalculatorsEmployee Classification:
Service Tenure & Eligibility
Completed Years of Continuous Service14 Years
Additional Months of Service7 Months
In Covered organizations, > 6 months is rounded up to 1 full year.
Salary & Gratuity Received
Last Drawn Basic Salary (Per Month)
Dearness Allowance (DA forming part)
Actual Gratuity Received / Disbursed
Section 10(10) Statutory Exemption
Exempt Gratuity: ₹8,65,385
Payment of Gratuity Act 1972 (15/26 × Last Drawn Salary × Years)
Taxable Gratuity
₹3,34,615
Taxed as Profit in lieu of Salary
Statutory Exemption Calculation Statement
| Total Monthly Salary (Basic + DA) | ₹1,00,000 |
| Effective Completed Tenure Recognized | 15 Years |
| Actual Gratuity Received (Criterion 1) | ₹12,00,000 |
| Statutory Formula Gratuity (Criterion 2) | ₹8,65,385 |
| Statutory Lifetime Limit Ceiling (Criterion 3) | ₹20,00,000 |
| STATUTORY EXEMPT GRATUITY (Least of 1, 2, 3) | ₹8,65,385 |
| TAXABLE GRATUITY SURPLUS (Added to Income) | ₹3,34,615 |
Section 89 Relief on Taxable Gratuity
If taxable gratuity pushes your total income into a higher tax bracket in the year of receipt, tax relief can be claimed under Section 89 by filing Form 10E on the income tax portal.