Notice received for proposed adjustment u/s 143(1)(a)

This query is : Resolved

Jomon P B (Querist)
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21 December 2019 We had filed the IT Return for a person who is working in a public sector bank after the retirement from Indian Air Force. We claimed the full deduction for the gratuity received from Indian Air Force u/s 10(10).

Now we received the Notice received for proposed adjustment u/s 143(1)(a) with the error description. "claim of deduction u/s 10(10) -death-cum-retirement gratuity received is more than the threshold limit"

Kindly advise what should we have to do in this case.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 December 2019 30 lacs is threshold for government servants. Claim above this limit will be disallowed. Reply Reply to the notice if the amount is within limits.

Jomon P B

Jomon P B (Querist)
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25 December 2019 How sir, As per the Provision of Income Tax Act, The gratuity received by the government employees is fully exempted.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 December 2019 30 lacs limit is there.

Jomon P B

Jomon P B (Querist)
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26 December 2019 ok sir, But in my case gratuity received is only Rs 1.5 Lakhs.
At the time of filing of IT Return what option I have to select for Nature of Employment. " Government or pensioner"
Also let me please tell me the taxability of gratuity received during the period of employment.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 December 2019 Select government. Not taxable if received as per gratuity Act on resignation.

Jomon P B

Jomon P B (Querist)
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26 December 2019 Sir, I selected as Government at the time of filing of IT Returns. But they issued notice for proposed addition for gratuity claimed u/s 10(10).

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 December 2019 Reply to the notice.

Jomon P B

Jomon P B (Querist)
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28 December 2019 How will reply. "Agree or Disagree" option is there. If I am disagreeing then I have to file the revised return. At the time of filing of original return, I had chosen as Government in case of Nature of Employment. I have serious doubt regarding what option I have to choose as the nature of employment. whether "Government" or "Pensioner"

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 December 2019 Disagree and say you are a Govt employee and the gratuity received is fully exempt. No need to file revised return.

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