05 August 2012
Haryana Government Service Rules earlier provided for employment of next eligible in case of death of an existing employee. However the practive of providing alternate employment has been dispensed with and a monetary help in the shape of financial assistance is provided to the spouse of such deceased employee which is equal to his/her last salary drawn and it continues till such deceased employee (if alive) would have reached the age of retirement. There-after the spouse gets normal pension/family pension as the case may be.
My querry is whether such assistance is "Profit in liew of Salary" or is taxable under the head "salaries" or is taxable under the head "income from other sources"
05 August 2012
Income from other sources. (The better opinion can be provided after reading the exact wordings of the FINANCIAL ASSISTANCE given by Haryana Govt. (It is slightly hard to believe that the assistance is equal to LAST DRAWN SALARY. Since the person has died, the family expenditure of one person must have gone down. If it is equal to LAST salary drawn, then it involves a sum of GRATUITY... that is why a careful reading of the same is required.)
06 August 2012
respected sir 573/1990 and 776/1999 both are the rule when ex gratia payment received once a time plz tell me if it will be received monthly basis
CAclubindia
