Gratuity Maximum Limit — ₹20 Lakh Cap Calculator
The maximum tax-free gratuity is ₹20 lakh. To hit this cap: salary of ₹1.5L/month needs ~24 years, ₹1L/month needs ~35 years, ₹2L/month needs ~18 years. Any amount above ₹20L is taxable.
Basic + Dearness Allowance only
Gratuity Amount
₹3,69,231
Tax-Free Amount
₹3,69,231
Up to ₹20L tax-free under Section 10(10)
Formula: (Last Salary × 15 × Years) ÷ 26. Capped at ₹20 lakh for employees covered under the Payment of Gratuity Act, 1972.
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