# Gratuity Calculator — Amount & Tax Exemption

For employees covered by the Payment of Gratuity Act: 15 days' last salary × years of service ÷ 26. Not covered: 15 days × average salary of the last 10 months × completed years ÷ 30. The tax-free limit for private employees is ₹20 lakh.

Open the calculator: https://itrfilingonline.in/tools/gratuity-calculator

## FAQ

### How are years of service rounded?

Under the Act, a part year of more than 6 months counts as a full year. For employees not covered by the Act, only completed years count.

### Is gratuity fully tax-free for government employees?

Yes, gratuity received by central/state government employees is fully exempt.

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By ITR Filing Online (TaxCaller India LLP). Call 9911146650.