Declaring Gratuity while filling up income tax return

[Asked by Guest]

Query on income tax returns

I am in this situation right now,

Example - I got 3 lacs rupees income from my previous employer which includes gratuity of amount ₹ 1 lac . As per my form-16, my total income is 3 lacs but total taxable income is 2 lac and 1 lac gratuity amount is exempted . But when I checked my form-26A. it says my total taxable income is ₹ 3 lac.

So question is - how can i say 1 lac is tax exempted here?

Should I just say my net income is 2 lac here Or is there any other section where I can mention gratuity amount? Please any help would be greatly appreciated.

AI Summary

Gratuity exemption: report gross salary including gratuity, then claim the gratuity as exempt so taxable income reflects the net amount.
Taxpayers should report gross salary including gratuity on the return and separately claim the gratuity amount under the return's exemption or exempt income field so that taxable income reflects income after the exemption; Form 16 can evidence the exempt gratuity while Form 26AS does not record exemptions.