A pneumatic tool has a body, a handle, a clip, a biasing member and a cap. The handle is formed on and extends from the body and has a free end and an annular shank extending from the free end. The clip is rotatably and slidably mounted on the shank and has a collar and a clip tab. The collar is rotatably and slidably mounted around the annular shank and has multiple teeth formed on a side of the collar facing away from the body. The clip tab extends from the collar. The biasing member is mounted around the annular shank and has two ends abutting respectively with the handle and the collar. The cap is detachably attached to the shank and has multiple recesses respectively corresponding to and engaging with the teeth on the collar.