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Payment of Gratuity Act

Gratuity Calculator (Act 1972)

Compute statutory employee gratuity entitlement using the 15/26 formula and verify the ₹20,00,000 tax-exempt threshold.

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Gratuity Parameters

Minimum 5 years of continuous service required to be eligible under the Act.

Statutory Gratuity Entitlement

Calculated using: (15 × Last Drawn Salary × Tenure) ÷ 26

Total Gratuity PayableGross Statutory Entitlement
₹5,19,231
Tax-Exempt Portion (Sec 10(10))₹5,19,231Statutory Tax-Exemption Limit: ₹20 Lakhs
Taxable Excess (if any)₹0Taxable under Income from Other Sources / Salary
Statutory Reference: Section 4(2) of the Payment of Gratuity Act, 1972 & Section 10(10) of the Income Tax Act, 1961.

Statutory Disclaimer: This computation is generated for illustrative, analytical, and estimation purposes under the relevant provisions of the Income Tax Act, 1961, Finance Acts, CGST Act, 2017, and Payment of Gratuity Act, 1972. It does not constitute a formal statutory audit certification or professional tax opinion under ICAI guidelines. Please consult a qualified Chartered Accountant at NEXSAS Consultants (advisory@nexsas.in / +91 73064 35592) before finalizing statutory filings or making binding financial commitments.