Pension income exempt u/s 10(18)

This query is : Resolved

Vishal Shah (Querist)
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17 June 2011 The query is that a person is receiving income only by way of pension from central government which is exempt u/s 10(18). How should this amount be reflected in the computation sheet. Should it be shown in salaries and then exemption claimed or directly shown as exempt income

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 June 2011 It has been seen in Schedule S of the ITR-2, Details of Income from Salary.....
the item 1 requires the figure excluding the exempt income, so here the figure required to be mentioned is =0
Then Item 2 of this schedule Requires Allowances Exempt U/s 10....
Even though Pension is exempt U/s 10(18), yet it is not an allowance.
So, no where the figure of pension can be mentioned in this schedule.
*
Looking to the ambiguity in the schedule itself, it can be concluded that it is better to show against Item No 5 of Schedule EI ; of Exempt Income.

Vishal Shah

Vishal Shah (Querist)
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17 June 2011 Dear sir, in schedule S of the ITR-2, the first line only says Salary ( Excluding all allowances, perquisites and profit in lieu of salary), so cant we put it in that? Cos if we put it in Item No 5 of Schedule EI ; of Exempt Income, the tax department will not come to know the nature of exempt income

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