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Bereavement allowance

aman d. sharma (Article Assistant) (38 Points)

24 July 2019

While doing Statutory audit in a school, school has given Bereavement amount to one of their teacher on death of his husband who is not working in that school. Only teacher is working. And they have not taxed it in her salary. So want to know the taxability part of this bereavement amount.??

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5 Replies

rama krishnan (12244 Points)
Replied 24 July 2019

in my opinion it's taxable in the hands of teacher. difference of opinions are invited

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aman d. sharma (Article Assistant) (38 Points)
Replied 24 July 2019

We also recommended them the same thing but her CA is asking us under which section it's taxable... 😅

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 24 July 2019

Explanation 3.—For the purposes of this sub-clause, "salary" includes the pay, allowances, bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called, from one or more employers, as the case may be As per explanation 3 to section 17, any receipts, by whatever name called, received by the employee from employer is taxable unless it's exempted under section 10. To the best of my knowledge, there's no provisions in section 10 to exempt bereavement allowance

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