Calculate your gratuity entitlement under the Payment of Gratuity Act.
After 5 years of continuous service with the same employer (with limited exceptions for death/disability). Gratuity is paid on resignation, retirement, or termination (but not on termination for misconduct).
Companies with 10+ employees at any point in the preceding 12 months are covered. If not covered, the formula changes slightly (15/30 instead of 15/26) and tax-free limit is based on the lower of actual gratuity, statutory limit, or 15-day wages for every completed year.
₹20 lakh lifetime is tax-free for private-sector employees under Section 10(10). Government employees have full exemption. Amount above ₹20 lakh is taxable in your income year received.
Partial years of 6 months or more count as a full year. So 5 years 7 months = 6 years for calculation. 5 years 5 months = 5 years.