Gratuity exemption on retirement

In plain language

[DRAFT — needs changes before publishing.] Gratuity received on retirement can be exempt under section 19, broadly:

• Death-cum-retirement gratuity and certain defence gratuities — exempt in full.
• Gratuity under the Payment of Gratuity Act, 1972 — exempt up to the amount computed under section 4(2)/(3) of that Act.
• Other gratuity — exempt up to a specified limit; the balance is taxable.

Reviewer: insert the exact monetary ceiling and confirm the computation before this goes live.