Leave you did not take, and gratuity, when you retire

On the same table, section 16(ia) is the standard deduction. In the normal tax regime it is ₹50,000 or the salary, whichever is lower. Under section 115BAC(1A)(ii) it is ₹75,000 or the salary, whichever is lower. The retirement rows are not printed that way. Each one is a single exemption.

How gratuity sits inside a CTC is on the CTC anatomy page. The limits below are only the employees-benefits rows. The table does not print a sample salary, and this page does not add one.

Section 10(10AA) on the table is encashment of unutilized earned leave at the time of retirement. A government employee's row is fully exempt. For any other employee, the exempt amount is the least of four figures.

While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the current employer. Average salary is the average salary of the last 10 months immediately preceding the retirement. Salary for this row is basic pay, plus dearness allowance to the extent it forms part of retirement benefits, plus turnover based commission.

The row is headed "at the time of retirement". It does not print a separate line for leave the employer buys from you while you are still in the job.

Section 10(10)(i) is gratuity received by government employees, other than employees of statutory corporations. That row is fully exempt.

Section 10(10)(ii) is death-cum-retirement gratuity for other employees who are covered under the Gratuity Act, 1972. The particulars say "subject to certain conditions". The benefits cell does not list those conditions. The exempt amount is the least of the three lines below. The note on the fraction says 7 days, instead of 15, for an employee of a seasonal establishment.

Salary in that row is last drawn salary including dearness allowance, and excluding any bonus, commission, HRA, overtime, and any other allowance, benefit, or perquisite.

Section 10(10)(iii) is death-cum-retirement gratuity for other employees who are not covered under the Gratuity Act, 1972. It also says "subject to certain conditions", and it also does not list them. The exempt amount is the least of half a month's average salary times completed years of service, ₹20,00,000, and the gratuity actually received. Average salary is the average of the last 10 months immediately preceding the month of retirement. Salary here is basic pay, plus dearness allowance to the extent it forms part of retirement benefits, plus turnover based commission.

₹20,00,000 is one of those three amounts. The row does not call it a lifetime total, and it does not say to subtract an exemption an earlier employer already allowed. The gratuity calculator works out a payout. It is not a substitute for these two rows.

Section 10(10B) is retrenchment compensation received by a workman under the Industrial Disputes Act, 1947. The particulars say it is subject to certain conditions. The exempt amount is the least of the amount calculated under section 25F(b) of that Act, ₹5,00,000, and the amount actually received.

The note on the row says two further things. Relief under section 89(1) is available. And 15 days' average pay for each completed year of continuous service, or any part of a year in excess of 6 months, is to be adopted under section 25F(b). The table does not name a form for that relief. This page does not name one.

Section 10(10C) is an amount received on voluntary retirement or voluntary separation, again subject to certain conditions. The benefits cell does not list the conditions. It says the exempt amount is the least of the following.

The cell does not define "salary" for this row. The leave-encashment definition is a different row, and this page does not copy it across. Payroll still has to tell you which row it used. The rest of a salary slip, once you have the taxable part, is the salaried guide and the CTC calculator.