Tax & Compliance Calculators
Simplify tax calculations and compliance with our comprehensive tax calculators. Plan your taxes, maximize savings, and stay compliant with Indian tax laws.
Gratuity Calculator (India)
Total Service: 10 years 6 months
Effective Years: 11 years (for calculation)
Formula Used: (Last Salary × 15 × Years) / 26
Total Gratuity
₹3,17,308
Last Drawn Salary
₹50,000
Total Gratuity
₹3,17,308
Exempt Amount
₹3,17,308
Taxable Amount
₹0
Gratuity Growth Over Years
Gratuity Calculation Rules
| Organization Type | Coverage | Formula | Exemption Limit |
|---|---|---|---|
| 10+ Employees | Covered under Act | (Salary × 15 × Years) ÷ 26 | ₹20,00,000 |
| <10 Employees | Not covered under Act | (Salary × 15 × Years) ÷ 30 | ₹20,00,000 |
Eligibility Criteria
- • Minimum 5 years of continuous service required
- • Death or disablement waives the 5-year requirement
- • Resignation after 5+ years makes you eligible
- • Termination due to misconduct forfeits gratuity
Calculation Notes
- • Months ≥6 are rounded up to next year
- • Months <6 are rounded down
- • Basic salary + DA is considered for calculation
- • Maximum gratuity capped at ₹20 lakhs (exempt)
What is Gratuity?
Gratuity is a lump sum payment made by an employer to an employee as a token of appreciation for services rendered. It's a retirement benefit provided under the Payment of Gratuity Act, 1972.
- Covered Organizations: Companies with 10 or more employees must provide gratuity.
- Tax Treatment: Up to ₹20 lakhs is tax-exempt. Amount above this limit is taxable.
- Payment Timeline: Must be paid within 30 days of becoming due.
This calculator provides estimates based on current rules. Actual gratuity may vary based on company policy and employment terms.
Popular Tax Calculators
Income Tax Calculator
HRA Calculator
Capital Gain Calculator
GST Calculator
TDS Calculator
Section 80C Calculator
Advance Tax Calculator
Tax Refund Calculator
Gratuity Calculator
Professional Tax Calculator
Optimize your taxes
Make smart tax decisions with our comprehensive calculators