Any gratuity received under the Payment of Gratuity Act, 1972, shall be exempt u/s 10(10)(ii) of the Income Tax Act, 1961 to the extent it does not exceed an amount calculated in accordance with the provisions of section 4(2) [i.e. (15 / 26 days of last drawn monthly wages) X completed years of service or part thereof in excess of six months] subject to the enhanced limit of Rs.20,00,000/- as notified u/s 4(3) of the Payment of Gratuity Act, 1972 in relation to the employees who retire or become incapacitated prior to such retirement or superannuate or die,on or after the 29th day of March, 2018.
👉Ministry of Labour and Employment Notification No.S.O.1420 (E) dated 29 March, 2018
TNEB RETIRED ENGINEERS' SANGAM 