04 August 2016
ncome Tax Liabilities of employee's wife on amount recevied on death of her husband.
1) family pension 20000 per month (2) Death gratutity of Rs. 7 lakhs (3) Insurance Claim of Rs. 3 Lakh (4) GPF nomination Amount of Rs. 3.5 Lakhs (5) if any additional amount received from other Source like interest on deposit on joint account with her husband
I want to know that whether she is
(1) liable to file income tax return (2) if yes what type of amount on which she is liable to pay income tax (3) Income tax slabs (4) is she liable to pay tax on amount received by her OR interest received on deposit / investment of such amount received from her husband's department
04 August 2016
Death cum retirement gratuity received by the widow of a government employee is exempt. In case of non-government employees, exemption is subject to the provisions of section 10(i). Receipt of insurance and GPF by the widow are exempt u/s 10.
Family pension, interest etc. are taxable as other income. In case of family pension a deduction of Rs. 15,000 or 1/3 of pension received by widow (whichever is lower) is available as deduction u/s 57(iia).
05 August 2016
Leave encashment is exempted u/s 10(10AA). In case of government employee fully exempted. In case of other employees. leave encashment received on retirement or superannuation or otherwise (resignation etc.) is exempted subject to conditions as per section 10(10AA)(ii). Amount received from GIS not an income. Hence, not taxable.
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