As per income tax rule
In case, when private employees covered under the payment of Gratuity Act of 1972, any gratuity received is tax exempted to the extent of least of the following:
- Statutory limit of Rs 10 lakh. (Maximum limit / Govt notified amount)
- Last drawn salary * 15/26 * No. of completed years of service.
- Actual Gratuity received by you.
If the gratuity exceeds the limit mentioned above, then it becomes taxable.
In my case it is 78000 as per rule 2 and 92000 as per rule 3.Thus the difference which is 14000 is taxable.
But how much I have to pay TAX? Is this 10% always or as per tax bracket in which I am coming?
While filing ITR where I need to show/fill this 14000 earning? Is it “Income from other sources”?