Claim Gratuity more than once and from more than one employer- Individual Taxation

Gratuity is a ‘Salary’ income and any amount you receive as Gratuity is added to your income for that year under the head “Income from Salary”. Gratuity is payable only after the completion of 5 years of continuous service in the organization.

It is mostly seen that the most of the employee has a misconception that one can receive gratuity only once or from only one employer.

This is totally a misconception and the restriction is only to amount of exemption to be availed in respect of Gratuity which at present is Rs. 10,00,000/- also known as ceiling of exemption.

The ceiling of exemption is applied to the aggregate of the gratuities in case the same is received from more than one employer in the same year, or in different years.

Where an employee had received gratuity in any earlier year(s) and had claimed exemption u/s 10(10) in respect of gratuity received earlier also, he will still be entitled to this exemption but the limit which at present is Rs. 10,00,000/- shall be reduced by the amount of exemption(s) availed in the earlier year(s).

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