Exemption under section 10

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Shall I declare Leave encashment, Gratuity and GPF amount for a retired govt employee (my father) in ITR, if his department has not shown these amounts in form 16. (Even If they are refusing for a revised form 16.)
Replies (12)

Are you asking whether not to report the income? It amounts to tax evasion which is illegal. You shall delcare the income and do tax planing, which is legal to reduce the tax burden. 

For a retired govt employee all these are exempted incomes under section 10.

You sholud declare all exempted income in ITR1  even if it is not shown in Form 16.

 

Yes, if you have valid documentary proof as your taxable income won't match with form 16 therefore query is surely going to come from department
So, it means if gross income in Form 16 is 6,00,000 and all three benefits (Leave Enc, Gratuity and PF) are of total 15,00,000 Then I can show total of 21,00,000 as gross salary in ITR and can take exemption under section 10, even if gross salary of ITR (21 lac) and form 16 (6 lac)does not match. As a proof, I have bank statement.

Show 15 lakh in 27 d of ITR form with appropriate section.

Show  6 lakhs in ITR-1  Salary plus  Allowance plus perquisites.

You need to show taxable income under head salaries and exempt income under Other, under head Exempt income which is available after ROW NO D14 in ITR 1

somebody has told me that I have to show exempt income+ taxable income in B1 and then exempt income after D14

Mr Nikhil Vyas

Go to S.no 27 d 

1) s.no 1 click on the down ward arrow  - select  10(10)  - put gratuity amount in green cell

2) s.no 2  again click on down ward arrow select 10(10AA) -  put leave encashment  amount in green cell

3) s.no 3  again click on down  ward arrow  select  10(11)  - put  GPF(statuary provident fund) amount in green cell.

EXEMPTION PART IS OVER

4)   In salaries and pension  s.no 1 put  6 lakhs amount which is taxable

I HOPE THIS IS CLEAR

 

No you need to show only taxable income in B1 since exempt income does not form part of total income

MR Ganesh S.no 27 is for reporting purpose only . It does not come under Taxable income.

Thank you everyone. My doubts are clear now.

Shirish S S has explained it correctly.


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