Skip to main content
Salary & Perquisites Hackseasylow riskAt retirement1 min readUpdated 30 Oct 2025

Gratuity Exemption Bump

₹20 lakh tax-free gratuity for private sector

Potential Savings
₹6.24 lakhs tax saved
Time Required
At retirement
Complexity
Easy
Legal Status
Fully legal
applicable toSalaried

overview

What is this hack?

Private sector employees get ₹20 lakh tax-free gratuity (increased from previous limits) at retirement

key benefits
  • Potential savings: ₹6.24 lakhs tax saved
  • Implementation time: At retirement
  • Legal status: fully legal
  • Risk level: low

related topics

gratuityexemptionretirementprivate sector

Related Calculators

Related Articles

related tax hacks

Need help implementing this hack?

Get expert guidance from CA Ashama Rajawat on implementing this strategy correctly for your specific situation.