Gratuity Tax Exemption Calculator — ₹20 Lakh Limit
Gratuity up to ₹20 lakh is tax-free for private-sector employees. For ₹1.5L/month salary after 25 years: gratuity = ₹21,63,462. Tax-free: ₹20L. Taxable portion: ₹1,63,462 (at your slab rate).
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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