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Gratuity, pension retirement funds in itr

ITR Filing 1812 views 2 replies

In ITR where do you show Gratuity, pension , leave encashment etc?

 

What most people do is show it under Schedule EI [Exempt income portion]

 

But it is specifically been mentioned that salary has to be as per S.17(1) , which includes all above.

I have myself not handled much cases of these but even in Form 16 which I saw , did not included any of those.

 

Ideally should it not be shown under gross salary and then exemption be claimed u/s 10 ?

 

 

 

S.17(1)  "salary" includes—

 (i)  wages;

(ii)  any annuity or pension;

(iii)  any gratuity;

(iv)  any fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages;

 (v)  any advance of salary;

(va) any payment received by an employee in respect of any period of leave not availed of by him;

(vi)  the annual accretion to the balance at the credit of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under rule 6 of Part A of the Fourth Schedule;

(vii) the aggregate of all sums that are comprised in the transferred balance as referred to in sub-rule (2) of rule 11 of Part A of the Fourth Schedule of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under sub-rule (4) thereof; and

(viii) the contribution made by the Central Government or any other employer in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD;

Replies (2)

In ITR one there is provision to enter the Net taxable salary only. Hence it is OK if you do not show the break up details. But exempt income in ITR 1 is only upto 5000/- So Please file ITR 2 where you can show the exempt income fully 

But Sir in other forms break up is given, so isn't it most appropriate to show it under gross salary and then to claim exemption ?  And in ITR 1 also, (if am not mistaken) its that if exempt income from aggriculture is more than 5k then other form has to be used , but for other than aggricultural income it has not been so specified

Even in instructions they have written "Use ITR-2 or 2A, as applicable, if agricultural income exceeds Rs. 5,000."


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