29 July 2014
Dear Sirs, I have a doubt. Mr. A is an ex-army personnel, getting a certain amount... say Rs. 130,000/- as pension per year. He is now working in corporate sector with a net annual emolument of Rs. 2.50 Lakhs.
Whether he is to be taxed for Rs. 50,000/- (deducting Rs. 2,00,000/- from Rs. 2.50 Lakhs) or Rs. 1,80,000/- (deducting Rs. 2,00,000/- from Rs. 3,80,000/-) ?
It is heard that since Mr. A is retired in 2003 and receiving only part as monthly of his full pension (after commutation)
Kindly advise so as to file the income tax return accordingly.
30 July 2014
His income is Rs 3,80,000. Tax is to be calculated after deducting from this, the deductions available U/S 80C(Savings in PF,PPF,LIC...etc.),80D for med insurance,80DD,80G etc. If the person has income from house property,income from capital gains and interest income etc.. Then,all those income are also to be included after allowing deductions available under those income heads.
CAclubindia
