Now, Gratuity maximum Income Tax exemption limit has been increased to Rs. 10 Lakh under sub clause (iii) of clause (10) of section 10 of the Income Tax Act 1961. The extended exemption limit notification will be implemented on those employees who retire, or become incapacitated before retirement, or expire, or whose services are terminated, on or after the 24th May 2010.
Read below complete Notification No. 43/2010;F.No.200/33/2009-ITA.I