Gratuity, pension retirement funds in itr

Z (         ) (2960 Points)

03 August 2015  

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;