Section 10(10), IT Act 1961 [S10-1YZ]
As at 7 September 2026. Repealed from 1 April 1962 by Income-tax Act, 1961 [A10-0WA].
In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included —
(10)(i) any death-cum-retirement gratuity received under the rules of the Central Government or a State Government or a local authority, or under the Pension Rules or any similar scheme applicable to members of the civil services, the defence services or civil posts;
(ii) any gratuity received under the Payment of Gratuity Act, 1972, to the extent it does not exceed an amount calculated in accordance with sub-sections (2) and (3) of section 4 of that Act;
(iii) any other gratuity received by an employee on his retirement or on his becoming incapacitated prior to such retirement, or received by his widow, children or dependants on his death, to the extent it does not exceed one-half month's salary for each year of completed service, calculated on the basis of the average salary for the ten months immediately preceding the month in which the event occurs, subject to such limit as the Central Government may notify — Rs 20 lakh for retirement, death, resignation or disablement occurring on or after 29 March 2018.
Where gratuity is received from more than one employer in the same year, or was received in any earlier year, the aggregate amount exempted under this clause cannot exceed the notified limit. [...]
Defined terms in this text (9)
child: Section 2(f), DPDP Act: "child" means an individual who has not completed the age of eighteen years;
child: Section 2, Madras, Bengal and Bombay Children (Supplementary) Act, 1925 [S17C74] (In this Act, unless the context otherwise requires,—): "child" means a person who has not completed eighteen years of age
child: Section 2, Orphanages and Other Charitable Homes (Supervision and Control) Act, 1960 [S1FWXN] (In this Act, unless the context otherwise requires,—): "child" means a person who has not completed eighteen years of age
child: 16 more definitions.
employee: Section 2(f), EPF Act: "employee" means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an establishment, and who gets, his wages directly or indirectly from the employer, and includes any person, - (i) employed by or through a contractor in or in connection with the work of the establishment; (ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961), or under the standing orders of the establishment;
employee: Section 2(e), Gratuity Act: "employee" means any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a factory, mine, oilfield, plantation, port, railway company, shop or other establishment to which this Act applies, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity;
employee: Section 2(k), Wages Code: "employee" means, any person (other than an apprentice engaged under the Apprentices Act, 1961 (52 of 1961)), employed on wages by an establishment to do any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied, and also includes a person declared to be an employee by the appropriate Government, but does not include any member of the Armed Forces of the Union;
employee: 5 more definitions.
employer: Section 2(l), Wages Code: "employer" means a person who employs, whether directly or through any person, or on his behalf or on behalf of any person, one or more employees in his establishment and where the establishment is carried on by any department of the Central Government or the State Government, the authority specified, by the head of such department, in this behalf or where no authority, is so specified the head of the department and in relation to an establishment carried on by a local authority, the chief executive of that authority, and includes, - (i) in relation to an establishment which is a factory, the occupier of the factory as defined in clause (n) of section 2 of the Factories Act, 1948 (63 of 1948) and, where a person has been named as a manager of the factory under clause (f) of sub-section (1) of section 7 of the said Act, the person so named; (ii) in relation to any other establishment, the person who, or the authority which, has ultimate control over the affairs of the establishment and where the said affairs is entrusted to a manager or managing director, such manager or managing director; (iii) contractor; and (iv) legal representative of a deceased employer;
employer: Section 2, Bengal Bonded Warehouse Association Act, 1838 [S10R57] (In this Act, unless the context otherwise requires,—): "employer" means the person who has ultimate control over the affairs of the establishment
employer: Section 2, Bengal Bonded Warehouse Association Act, 1854 [S11KRS] (In this Act, unless the context otherwise requires,—): "employer" means the person who has ultimate control over the affairs of the establishment
employer: 16 more definitions.
income: Section 2(24), IT Act 1961: "income" includes- (i) profits and gains; (ii) dividend; (iia) voluntary contributions received by a trust created wholly or partly for charitable or religious purposes [...]; (iii) the value of any perquisite or profit in lieu of salary taxable under clause (2) [...] of section 17; (iiia) any special allowance or benefit [...]; (iiib) any allowance granted to the assessee either to meet his personal expenses [...]; (iv) the value of any benefit or perquisite, whether convertible into money or not [...]; (v) any sum chargeable to income-tax under clauses (ii) and (iii) of section 28 or section 41 or section 59; (va) to (ve) any sum chargeable to income-tax under clauses (iiia) to (v) of section 28; (vi) any capital gains chargeable under section 45; (vii) the profits and gains of any business of insurance carried on by a mutual insurance company or by a co-operative society [...]; (viia) the profits and gains of any business of banking (including providing credit facilities) carried on by a co-operative society with its members; (ix) any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever [...]; (x) any sum received by the assessee from his employees as contributions to any provident fund or superannuation fund [...]; (xi) any sum received under a Keyman insurance policy [...]; (xii) any sum referred to in clause (va) of section 28; (xiia) the fair market value of inventory referred to in clause (via) of section 28; (xiii) to (xviib) any sum or property referred to in the specified clauses of sub-section (2) of section 56; (xviii) assistance in the form of a subsidy or grant or cash incentive or duty drawback or waiver or concession or reimbursement (by whatever name called) by the Central Government or a State Government or any authority or body or agency in cash or kind to the assessee [...];
month: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): "month" shall mean a month reckoned according to the British calendar
person: Section 2(31), IT Act 1961: "person" includes- (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether incorporated or not, (vi) a local authority, and (vii) every artificial juridical person, not falling within any of the preceding sub-clauses. Explanation.-For the purposes of this clause, an association of persons or a body of individuals or a local authority or an artificial juridical person shall be deemed to be a person, whether or not such person or body or authority or juridical person was formed or established or incorporated with the object of deriving income, profits or gains;
person: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): "person" shall include any company or association or body of individuals, whether incorporated or not
previous year: Section 3, IT Act 1961: "For the purposes of this Act, "previous year" means the financial year immediately preceding the assessment year: Provided that, in the case of a business or profession newly set up, or a source of income newly coming into existence, in the said financial year, the previous year shall be the period beginning with the date of setting up of the business or profession or, as the case may be, the date on which the source of income newly comes into existence and ending with the said financial year."
previous year: 8 more definitions.
retirement: Section 2(q), Gratuity Act: "retirement" means termination of the service of an employee otherwise than on superannuation;
year: Section 3, General Clauses Act, 1897 [S100SN] (In this Act, and in all Central Acts and Regulations made after the commencement of this Act, unless there is anything repugnant in the subject or context): "year" shall mean a year reckoned according to the British calendar
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