Under the Income-tax Act, 2025, death-cum-retirement gratuity received by a Central Government employee…

Section 19(1) of the Income-tax Act, 2025 (Table: Sl. No. 3), read with section 19(2)(g), allows the entire amount of death-cum-retirement gratuity received under the Central Civil Services (Pension) Rules, 2021 (or the revised pension rules of the Central Government, or similar schemes for the all-India services, State civil services and local authority employees) as a deduction in computing income under the head 'Salaries' (formerly s.10(10)(i) of the Income-tax Act, 1961). There is no monetary ceiling. Ceilings apply only to gratuity received by other employees (Table: Sl. Nos. 5 and 6), so the options limiting the deduction to ₹ 10,00,000 or ₹ 20,00,000 are wrong, and the gratuity is not fully taxable. Since section 202(2)(a)(iv) withdraws only Sl. No. 1 of this Table, the deduction is available under the new tax regime as well.