overall exemption limit similarly where any such gratuities was or were received in one or more financial years then the exempt amount claimed earlier has to be taken into account while computing the exemption at presentcaution pointin the case of employees receiving gratuity other than under the government scheme or under the payment of gratuity act the limits have been increased to rs 10 lakh from the erstwhile limit of rs 35 lakh this enhanced limit is applicable to employees who retire become incapacitated before retirement expire or whose services are terminated on or after 24th may 2010 therefore gratuity in respect of earlier period would continue to be governed by the erstwhile tax exemption limitsvikas vasal executive director kpmg