Hi team,
This is my second job. First job I did for 5 years where I had received auto payment of gratuity and tax was cut at that time.
Now, in 2024, after completion of six years in my second job, as I leave this job today. do I get auto payment of Gratuity? Would tax get cut this time also?
Gratuity is tax-exempt up to a certain limit under Section 10(10) of the Income Tax Act. For non-government employees, this exemption limit is currently ₹20 lakh over the course of their lifetime. If the cumulative gratuity amount from both jobs exceeds ₹20 lakh, the excess will be taxable. Otherwise, the gratuity you receive now should be tax-free if it falls within the limit.
Also please check if the tax cut at that time was on gratuity or any other amount that you received