27 February 2010
A Government Employee, having only Interest income (chargeable to Income fromOther Sources) other than Salary, receives Rs.25 lakh on retirement under various heads - Gratuity, Leave encashment, Provident Fund, etc which are exempt from tax. 1.Which is the appropriate form of return - ITR-1 or ITR-2? 2.If he is required to mention these receipts in Return?
28 February 2010
Thanks CA Ashok. Since the exempt income/receipts of the person do fall in the category of Salary, I believe, as there exists employer-employee relation, only ITR-1 is applicable. But at the same time in ITR 1, one can declare Exempt INTEREST Income only. The person in question has earned/received hefty Rs.25 Lakh on a/c of Gratuity, PF, Leave encashment, etc. If ITR-1 is filled, these receipts shall remain unreported.
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