The present invention relates to a stable pharmaceutical composition of saxagliptin or salts thereof. In particular the invention relates to stable comprises a core and two or more layers coated on the core wherein the inner first coat is free of polyvinyl alcohol. Such composition of saxagliptin may exhibit relatively improved storage stability and particularly levels of degradants in the formulation during storage can be effectively controlled. The invention also includes a process of preparing such compositions and method of treating type-II diabetes mellitus by administering the composition to a patient in need thereof.