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How to declare gratuity while filing income tax returns

Anirudha Sonar (Others) (26 Points)

30 August 2015

Query on income tax returns

I am in this situation right now,

Example - I got 3 lacs rupees income from my previous employer which includes gratuity of amount Rs 1 lac . As per my form-16, my total income is 3 lacs but total taxable income is 2 lac and 1 lac gratuity amount is exempted . But when I checked my form-26A. it says my total taxable income is Rs 3 lac.

So question is - how can i say 1 lac is tax exempted here?

Should I just say my net income is 2 lac here Or is there any other section where I can mention gratuity amount? Please any help would be greatly appreciated.

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6 Replies

Rajagopalakrishnan R (PARTNER) (1417 Points)
Replied 30 August 2015

If the gratuity of 1 lakh is exempt, you need to declare a net salary income of Rs. 2 lakh only in your ITR. as per 26AS, the amount shown is income under the head "salary" and not taxable salary. You need not worry about the difference beween that and the ITR figure as long as your claim for exempt gratuity is correct

Anirudha Sonar (Others) (26 Points)
Replied 30 August 2015

Thank you for your reply Sir. I was little confused initially but now it seems ok.

And in any case if there is any discrepancy found then I belive individual still gets the time of two years after the last date of tax filing to correct it and there is no panalty for that. I read it on one of the blog.

I will file my income tax accordingly.