Gratuity Calculator

Calculate gratuity amount • Tax-free up to ₹20 Lakh

Gratuity Details

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Companies with 10+ employees (Payment of Gratuity Act 1972)
₹10K₹5L
050
Min 5 years required (for covered Act)

Gratuity Amount

Total Gratuity ₹2,88,462 After 10 years of service
Tax-Free Amount ₹2,88,462
Taxable ₹0

📊 Calculation Formula

💡 Gratuity Insight

✅ Your gratuity is fully tax-free as it's under ₹20 Lakh limit. Section 10(10) exemption!

❓ FAQs

Gratuity is a lump sum payment by employer to employee for long service (5+ years). Governed by Payment of Gratuity Act 1972.

For Covered Act: (Last Salary × 15 × Years) / 26
For Not Covered: (Last Salary × 15 × Years) / 30

Yes! Gratuity is tax-free up to ₹20 Lakh under Section 10(10) of Income Tax Act. Amount above ₹20L is taxable.

Eligible after 5 years of continuous service. Not applicable in case of death/disability (no minimum). Paid on retirement, resignation, or death.