Gratuity is a statutory benefit paid by an employer to an employee as a token of appreciation for long-term service, typically after completing five or more years of continuous employment. Under the Payment of Gratuity Act 1972, the amount is calculated as fifteen days of last drawn salary for each completed year of service. Tax Deducted at Source (TDS) on gratuity depends on whether you are a government or private employee and whether the employer falls under the Gratuity Act.

Our free gratuity and TDS calculator helps you estimate the gratuity amount you are entitled to receive based on your last drawn salary, years of service, and employment type. The tool also shows the applicable tax exemption limits and potential TDS so you can plan your finances around retirement or job change. Understanding these calculations ensures you receive the correct amount and claim the right tax benefits when filing your income tax returns.