Mr. X, a Government servant, retired on 13th December 2020 and received a gratuity of Rs.14 lakhs. As per the provisions of the Income Tax Act 1961, which of the following is correct?
1
The entire amount of Rs. 14 lakh will be taxable.
2
Gratuity amount of Rs. 4 lakh will be exempted.
3
Exemption will be available on the entire Rs. 14 lakh.
4
Gratuity amount of Rs. 4 lakh will be taxable.