•Sec 10(10) & Sec 10(10AA)

Gratuity & Leave Encashment Exemption Studio

Calculate statutory exemptions on retirement/resignation terminal benefits under the Payment of Gratuity Act and CBDT Notification 31/2023 (₹25L cap).

Employee Name

PAN

Employer Name

Retirement Date

Total Gratuity Received

₹18,50,000

Gross receipt on separation

Exempt Gratuity (Tax-Free)

₹11,27,885

Least of statutory limits

Taxable Gratuity

₹7,22,115

Taxable under Income from Salaries

Gratuity Parameters u/s 10(10)

Employment Category

Actual Gratuity Received (₹)

Last Drawn Monthly Salary (Basic + DA) (₹)

Completed Years of Service

Service fraction > 6 months (Counted as 1 full year)

Terminal Benefit Working PaperAY: 2027-28

Gratuity Exemption Certificate u/s 10(10)

Assessee: Vikram Sengupta | PAN: ABCDE1234F

1. Actual Gratuity Received:₹18,50,000

2. Statutory Ceiling Limit:₹20,00,000

3. Formula Limit:₹11,27,885

15/26 × ₹85,000 × 23 Years = ₹11,27,885

Exempt Gratuity u/s 10(10):₹11,27,885

Taxable Gratuity in Salary:₹7,22,115

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Statutory & Compliance Disclaimer

This tool is an automated calculation, formatting, and compliance aid provided for informational purposes only. It does not constitute formal legal, taxation, or professional auditing advice. Calculations, citations, and draft documents must be independently verified by a qualified Chartered Accountant (CA) or Company Secretary (CS) against statutory provisions and applicable ICAI/ICSI guidelines before execution or certification.