Tax Tools
Gratuity & Leave Encashment
TaxRoutine — Retirement Benefits · Income Tax Act, 2025
Gratuity & Leave Encashment
Tax Exemption Calculator
Gratuity
Leave Encashment
Combined Summary
New
Gratuity Tax Exemption Computation
TaxRoutine · taxroutine.com · Schedule III, Income Tax Act 2025 · Payment of Gratuity Act, 1972
Gratuity Calculator
Payment of Gratuity Act, 1972 · Schedule III — IT Act 2025
Employee Category
Assessee Details (optional — for print)
Salary & Service Details
₹
Basic salary as per last salary slip
₹
DA forming part of retirement benefit. Enter 0 if not applicable.
≥ 6 months in last year is rounded up to 1 full year (for Gratuity Act employees)
Lifetime Exemption Cap
₹
Lifetime cap is ₹20,00,000. Enter amount already exempted from earlier employment(s). Enter 0 if this is first receipt.
₹
If not yet received, leave as 0 — the tool will compute the formula-based amount.
Gratuity Computation
Schedule III · IT Act 2025
Fill in employee details and click Calculate Gratuity to see the computation.
Employee Type—
Last Drawn Salary (Basic + DA)—
Qualifying Service—
Gratuity Formula
Salary × 15/26 × Years—
Statutory Cap (₹20,00,000)—
Actual Gratuity Received—
Gratuity Exempt
₹0
Gratuity Taxable
₹0
Note: Lifetime exemption cap is ₹20,00,000. Include all previous gratuity exemptions claimed. Consult your CA for finalisation.
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Leave Encashment Tax Exemption Computation
TaxRoutine · taxroutine.com · Schedule III, Income Tax Act 2025 · Section 10(10AA) equivalent
Leave Encashment Calculator
Schedule III · IT Act 2025 · All Scenarios
When is Leave Encashment Received?
Employee Category
Assessee Details (optional — for print)
Salary & Leave Details
₹
₹
Total salary for last 10 months ÷ 10. Salary = Basic + DA.
₹
Earned leave balance as on date of retirement / resignation
Default 30 days. Change if your organisation’s policy differs.
Lifetime Exemption Cap
₹
Lifetime cap is ₹25,00,000. Include exemptions claimed in earlier employments.
Lifetime Cap: ₹25,00,000
The aggregate exempt amount across all employments cannot exceed ₹25 lakhs.
The aggregate exempt amount across all employments cannot exceed ₹25 lakhs.
Leave Encashment Computation
Schedule III · IT Act 2025
Fill in the details and click Calculate Leave Encashment to see the computation.
Scenario—
Employee Type—
Actual Encashment Received—
Leave Encashment Exempt
₹0
Leave Encashment Taxable
₹0
Note: Lifetime cap ₹25,00,000 across all employments. Leave encashment during service is always fully taxable regardless of this tool’s output.
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Combined Retirement Benefits — Tax Computation Summary
TaxRoutine · taxroutine.com · Income Tax Act 2025 · Tax Year 2025-26
Calculate Gratuity and / or Leave Encashment first using the tabs above.
This tab will then show a combined retirement benefits summary with total exempt and taxable amounts.
Disclaimer: This tool covers Gratuity and Leave Encashment tax exemptions under the Income Tax Act, 2025 (effective 1 April 2026). Results are indicative. Actual exemption depends on employer records, completion of qualifying service and tax authority verification. Consult a qualified Chartered Accountant for your Income Tax Return.
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