Which tax regime should I choose?

Compare both with your actual deductions. The new regime wins for most salaried people with deductions below roughly ₹3–4 lakh; above that the old regime can win. Use the break-even calculator to find your exact crossover.

Do I need to pay the 4% cess separately?

No — the 4% health and education cess is added to your tax after rebate and relief. It is included in the final figure shown; you do not pay it as a separate challan.

Are 80C deductions allowed in the new regime?

No. Most Chapter VI-A deductions, including 80C, 80D and HRA, are not allowed under the new regime. Only the standard deduction of ₹75,000 and a few specific exemptions remain.

Is income up to ₹12 lakh really tax-free?

Yes — under the new regime, after the ₹75,000 standard deduction, the tax on ₹12 lakh gross is ₹60,000, fully rebated under Section 87A. Earn ₹1 more and marginal relief caps the tax at the excess over ₹12 lakh.

When does surcharge apply?

Surcharge applies above ₹50 lakh of taxable income (10% up to ₹1 crore, higher above). Most calculators on this site omit surcharge; if your income exceeds ₹50 lakh, add it manually or consult a CA.

What last drawn basic + da (monthly) should I enter in the Gratuity?

Enter your actual last drawn basic + da (monthly) — the default is only a starting example. For most people, last drawn basic + da (monthly) of the default shown on the page is realistic; if yours differs, the result will too. The years of continuous service input is usually the second-most important lever.

What is the difference between the Gratuity and 80G Donation Tax Saving Calculator?

The Gratuity focuses on tax computation and regime comparison; the 80G Donation Tax Saving Calculator is for a different but adjacent decision. Use both together — many people run the Gratuity first, then check 80G Donation Tax Saving Calculator to see the full picture.

Does the Gratuity include tax and cess?

Tax and cess are included where relevant to this calculator. The assumption line at the bottom states exactly which taxes and rates are applied. Surcharge above ₹50 lakh income is generally not modelled — if that applies to you, add it separately or consult a professional.

Why does my result change when I adjust the years of continuous service?

The years of continuous service affects the result because it changes the compounding or slab calculation directly. A small move in years of continuous service can compound to a large difference over time — run it at both a conservative and aggressive value to see the range.

Does the Gratuity store my data anywhere?

No. Everything runs in your browser. Nothing you type is sent to a server, stored in a database, or used for advertising. You can disconnect from the internet after the page loads and it still works.

Does the Gratuity include tax and cess?

Tax and cess are included where relevant to this calculator. The assumption line at the bottom states exactly which taxes and rates are applied. Surcharge above ₹50 lakh income is generally not modelled — if that applies to you, add it separately or consult a professional. On this Gratuity page, try adjusting the last drawn basic + da (monthly) input — it is the quickest way to see how the final figure moves for your own numbers.

Can I rely on the Gratuity result for filing or a loan application?

This is an educational estimate, not a certified figure. For filing returns, loan sanction or a contract, use the institution's own computation. Use this tool to spot mistakes or to decide between options before you apply. On this Gratuity page, try adjusting the years of continuous service input — it is the quickest way to see how the final figure moves for your own numbers.

Can I print or save the Gratuity result as a PDF?

Yes — every calculator page has a 'Save / Print as PDF' button. It prints a clean copy of the inputs and results without the header, footer and ads, suitable for saving or sharing. On this Gratuity page, try adjusting the last drawn basic + da (monthly) input — it is the quickest way to see how the final figure moves for your own numbers.

Does the Gratuity account for inflation or fees?

Inflation and fees are not deducted unless this calculator explicitly includes them. The result is in nominal rupees (today's value). To see the effect of inflation, run the inflation calculator alongside it. For investment products, subtract the expense ratio from your assumed return. On this Gratuity page, try adjusting the years of continuous service input — it is the quickest way to see how the final figure moves for your own numbers.

What is the single biggest lever in the Gratuity?

The biggest lever is usually last drawn basic + da (monthly). In most cases a 10% change there moves the final figure more than any other input. Start there when you are trying to improve the outcome. On this Gratuity page, try adjusting the last drawn basic + da (monthly) input — it is the quickest way to see how the final figure moves for your own numbers.

Income Tax & Salary

Gratuity Calculator

Gratuity payable under the Payment of Gratuity Act, with the ₹20L tax-free limit.

Your inputs

Results

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How this Gratuity Calculator works

What is Gratuity Calculator?

The Gratuity Calculator models one of India's government-backed small savings or social security schemes. These schemes — offered through post offices, public sector banks, and authorised institutions — are backed by sovereign guarantee and play a vital role in the financial lives of millions of Indian households, particularly in rural and semi-urban areas where access to formal financial markets is limited. They offer predictable returns, tax benefits, and capital safety that private sector products often cannot match.

Government scheme rates are typically reviewed quarterly or annually based on market conditions and policy objectives. This calculator uses the latest applicable rates and rules to give you an accurate projection of your benefits, returns, or eligibility. Whether you are planning for retirement, a girl child's future, senior citizen income, or simply safe fixed-income allocation, understanding the exact numbers is essential.

How to Use This Gratuity Calculator

Enter your values. Adjust the sliders or type directly into the number fields. All fields use Indian Rupees (₹) and percentages where applicable. The Gratuity Calculator updates instantly as you change any value — no separate calculate button needed.
Focus on the highlighted result. The result card shown in the accent colour is the primary output of this calculation. Read the supporting tiles for context.
Adjust the key inputs to see how sensitive the Gratuity Calculator result is.
Try a "best case" and "worst case" scenario to understand the range of outcomes.
Use the print button to save a copy of your calculation for future reference.
Save or print. Use the "Save / Print as PDF" button to keep a record of your calculation for your personal files or to share with your financial adviser.

Formula & Calculation Logic

Gratuity Formula: For covered employees: Gratuity = (Last drawn salary × 15 × number of years of service) ÷ 26. Last drawn salary = basic + DA.

All calculations on FinCal Hub run entirely in your browser using JavaScript. Your inputs are never sent to a server, and nothing you type is stored anywhere. This approach ensures your financial privacy while giving you instant results. The calculations follow Indian numbering conventions (lakhs and crores) and regulatory rules applicable for FY 2026-27 where relevant.

Where a calculator involves simplifying assumptions — such as constant returns on market-linked investments or a fixed interest rate for the full tenure of a floating-rate loan — these are clearly stated in the assumptions section below the results. Financial planning always involves uncertainty, and our calculators are designed to give you a reliable starting estimate rather than a guaranteed prediction.

Real-Life INR Examples

Example 1 — PPF accumulation: Contributing the maximum ₹1.5 lakh to PPF each year at 7.1% produces a maturity corpus of approximately ₹40 lakh after 15 years. The EEE tax status means every rupee of this is yours to keep, with no tax on contributions, interest, or maturity.

Example 2 — Senior Citizen Savings Scheme: A 60-year-old investing ₹15 lakh (the maximum limit) in SCSS at the current rate of 8.2% receives quarterly interest payments of approximately ₹30,750 — an annual income of ₹1.23 lakh. This provides a reliable, government-backed income stream for retirement.

Example 3 — Sukanya Samriddhi Yojana: A parent opening an SSY account for a newborn girl child and contributing ₹1.5 lakh annually for 15 years at 8% would accumulate approximately ₹63 lakh by the time the child turns 21. The EEE tax status and higher interest rate make SSY one of the most attractive options for girl child planning.

Common Mistakes to Avoid

Opening multiple PPF accounts in your own name. An individual is permitted only one PPF account. If you have old accounts from different institutions, they must be consolidated.
Missing the minimum annual contribution. PPF requires at least ₹500 per financial year to keep the account active. A lapsed account can be revived but involves penalties and extra paperwork.
Withdrawing from PPF prematurely for non-essential purposes. The 15-year lock-in is a feature that enforces discipline; breaking it unnecessarily sacrifices the most powerful compounding years.
Not understanding the tax treatment of different schemes. While PPF and SSY enjoy EEE status, schemes like NSC, SCSS, and Post Office TD have fully taxable interest (though NSC accrued interest qualifies for 80C reinvestment except the final year).
Assuming historical rates will continue indefinitely. Small savings scheme rates are now linked to government bond yields and reviewed quarterly. Your financial plan should account for the possibility of rates moving up or down.

When to Use (and When Not To)

Use the Gratuity Calculator when:

You are deciding how much to contribute to a government scheme this year
You want to project the maturity value or income stream from your Gratuity Calculator
You are comparing a government scheme against alternative products like FDs or mutual funds
You want to check if the scheme's lock-in and features fit your time horizon

Do not rely solely on this Gratuity Calculator when:

The decision involves complex legal or regulatory factors requiring professional expertise
Large sums of money or irreversible commitments are at stake
Your personal situation has unusual features that a general calculator cannot capture
You need personalised advice considering your complete financial picture

In these cases, use the Gratuity Calculator as a starting point, then consult a qualified CA, SEBI-registered investment adviser, or financial planner before deciding.

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