Validation Error for ITR2 - Gratuity Related

Income Tax ITR Filing
1

While filing tax, I am getting the below validation error.
Error :Exemption u/s 10(10) for gratuity shall not exceed income offered under the head salary under sub head gratuity receipt and cannot exceed Rs20 lakhs.

Kindly Suggest.

2

Hi @Mridul_Raha

As per the Income Tax Act, gratuity is fully exempt for a government employee u/s 10(10)(i).

For a non-government employee, who is covered by the Payment of Gratuity Act 1972- Exemption is available u/s 10(10)(ii). The least of the following is exempt from tax:

  1. Amount of Gratuity received
  2. â‚ą20 Lakhs
  3. Last salary (Basic + DA)* number of years of employment* 15/26

Here’s a read on Tax on Gratuity.

Hope this helps.

3

Goto salary and in section 17(1) add subhead gratuity.

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4

facing same issue “Exemption u/s 10(10) for gratuity shall not exceed income offered under the head salary under sub head gratuity receipt and cannot exceed Rs20 lakhs”

I tried below options

  • Providing break up of salary under head of Section17(1)
  • adding gratuity as well over there
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5

I also got same error. Just tried deleting gratuity row in salary income and then saved . Errro got removed.

Note : during providing breakup of salary one should select gratuity from selection box

6

I have the same issue. The amount (9L) claimed under exemption 10(10) is the same as the amount shown below salaries 17(1) under subhead Gratuity.
Yet, the following error shows.
ITR validation error: “Exemption u/s 10(10) for gratuity shall not exceed income offered under the head salary under sub head gratuity receipt and cannot exceed Rs20 lakhs”
Should I delete the subhead Gratuity and save?

7

Hi @User_One @Nitish_Varshney @PJ83 @Mridul_Raha

It just seems to be a warning message on the ITD.

However, here’s how you can Add Income from Salary on Quicko : Help Center on Quicko.

8

Getting the same error even after adding the gratuity option again.
Please suggest any workaround for the bug.

Has this issue been reported to Income tax?

9

I have the same error. I have selected the Gratuity component from the dropdown in the Income section and it still gives me error for validation

Note: Just found the fix… Delete the gratuity exemption 10 (10) row and add again. It works!

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10

As suggested by users, who experienced the same error, removing gratuity exemption altogether from (1) Gross Salary section under Schedule-Salary & (2) Exemption section and then adding them back, would be key.

I found saving/ taking print of ITR at the preview stage also disturbs the flow, so try straight verification after making changes, after all details verified and preview saved/ printed.

11

Just close the chrome, and do the validation in Microsoft Edge 100% you will get the solution. For any assistance please mail me thank you.

12

Just close the chrome, and do the validation in Microsoft Edge 100% you will get the solution. For any assistance please mail me thank you…

13

Just close the chrome, and do the validation in Microsoft Edge 100% you will get the solution. For any assistance please mail me thank you…

14

Hi All,

Thank you very much for all your replies. I was also getting the same error. I have applied all the suggestions (around 20 tries with different combinations) over here but it not worked for me. Here are my findings for the same which may be helpful to you.

Possibility of this error: If you are having multiple employers in a financial year.

Resolutions For me, there are 2 employers. But its not in correct order. I have changed the order and also I have provided break up of Salary ( Basic + Gratuity) of old employer. This has solved my problem at last.

Thanks Again.

15

Try login from another system. It worked for me.

16

Hi All

One solution to solve the validation error for Gratuity exemption item is as below:

  1. From the Form-16, the Gross salary under 17(1) is say for example 30 lakhs
    and this gross salary from your employer will include the Gratuity amount paid

  2. So by default

a) we are adding one line-item in the Salary section of the ITR as below:

Basic Salary - 30,00,000

b) And then in the section for income exemption (under section 10) further below in the same schedule-s, we add the line-item as below so that this amount is reduced from the gross salary of 30-lakhs added earlier above.

  • say the gratuity amnt is 8-lakhs, and you add the line-item section-10(10)

Gratuity - 8,00,000

  1. So now as we all experienced, the validation error for this gratuity exemption does not occur till the end when we try to submit the return…and then we have to go back to solve this error

  2. So the solution (which worked for me as such) is:

a) In the salaries section, break up the gross amnt of 30,00,000 as below and add the 2 items shown below:

Basic Salary - 22,00,000
Gratuity - 8,00,000

b) And then again further below under the income exemption for section-10(10), add the line item here again as below:

Gratuity [section-10(10)] - 8,00,000

and then add and confirm

c) And now we will observe that the gratuity exemption amnt is accepted AND it also subtracts from the gross salary of 30-lakhs…so that now the taxable income will be 22-lakhs as we expect it to be…and there will be no validation errors now

hope this helps

regards

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