Tax queries - most urgent

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Professional Student (Querist)
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05 August 2018 Respected Sir / Madam, please resolve my queries (with reference to provisions & case laws, if any) as follows:

1. Does System Software-WINDOWS 10 & Application Softwares-MS Office, TALLY.ERP9, WEBTEL be treated as intangible assets or tangible assets as per AS-10 "PPE" ?

2. As per Section-10(10AA), leave encashment received at the time of employees' retirement whether on superannuation or otherwise (i.e, VRS-assumed) will be exempt as per limits specified. But in case of some of the clients of our Firm, as per their Form 16 exemption of leave encashment is allowed in some cases & disallowed in other cases by employer in case of retrenchment & resignation also. Need clarifications with regard to the provision of IT Act, 1961?

3. Can Leave Travel Allowance / Concessions u/s-10(5) & Medical Reimbursement u/s-17(2) be claimed in filing ITR by the assessee, if no exemption given by employer as bills not submitted at that time?

4. Leave Travel Allowance / Concessions u/s-10(5) be claimed in the Block Period 2018-2021 in respect of 2 journeys. What is the meaning of JOURNEY here "ONE WAY" (i.e. only Going OR Return) or "TWO WAY" (i.e. Going AND Return)?

THANKS IN ADVANCE.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 August 2018 1. Intangible.

2. Disallowed , threshold may have crossed. Retirement, VRS, retrenchment and
resignation covered.

3. No.

4. Up and down covered.

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Professional Student

Professional Student (Querist)
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05 August 2018 Thanks for ur reponse Sir. But as per my query no.2, the full amount of Leave encashment is made taxable without any threshold in case of resignation & the assessee is not in continuity of service.
Besides, can you specifically mention in which provision of Income Tax it is written that an assessee cannot claim in ITR for LTA & Medical Reimbursement, if employer do not allows or any case laws, if you can mention. It will be of great help as I then I will be able to explain to clients or other staffs.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 August 2018 Resignation & 10(10AA). CIT Vs. R.J Shahney (1986) 159 ITR 160(Mad).

LTA & Medical reimbursement.. Corollary to clause 4.6.5 of Circular 29/2017.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 August 2018 CIT Vs D.P. Malhotra (1997) 142 CTR (Bom) 325 can be referred for resignation and 10(10AA).

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