I was a salaried person and file returns every year using ITR-1 form which includes income from salary and interest income. I worked as a IT professional in a Private company. I resigned the job in October 2013 and received Gratuity after I left. Also as part of final settlement amount I got Leave Encashment of Privilege Leave. It has been added to the taxable income and tax has been deducted by the employer which is also included in Form16 that employer has given me.
Note: This was my second job. I have not received any gratuity or leave encashment income from my previous employer.
I have the following questions:
1] I read that leave encashment is tax free upto 3 lakhs for non-government(private) employees. I received about 1 lakh. Is there any exemption available for this amount ? Can I claim the exemption in IT returns form and ask for a refund ?
2] I also received above 1 lakh as gratuity amount from employer for which tax was not deducted. This gratuity amount is not included in the form 16 given by employer. Since gratuity is exempted from tax, how can I show this in the income tax returns form ?
3] So to summarize, I have Salary (along with leave encashment on resignation) income till October 2013, Bank Interest income and Gratuity income this year. In the light of the questions 1] and 2] which ITR form should I use this year(FY 2013-2014, AY 2014-2015)for filing income tax returns so that I can claim exemption as in questions 1] and 2].
Please consider these queries as urgent, as I have to file IT Returns before July 31,2014.
Thanks.
CAclubindia
