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Salary as well as pension and retirement benefits

05 January 2021

a state govt employee retire during the mid of year and receive salary as well as pension for the AY 2020-2021, she also recieved retirement benefits i.e, g.p.f , leave encashment, gratuity and computed pension . problem is that these retirement benefits first add in salary then deduct under section 10. any other provison

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7 Replies

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 05 January 2021

Salary & Pension - Whole amount taxable

Commuted Pension - Exempt

Gratuity - Exempt upto Rs .20 Lakhs

Singh Kamboj (396 Points)
Replied 05 January 2021

Sir all these benefits are exempted, my query is these benefits are add in salary then less from salary under section 10. or ony show these benefits in exempted income column

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 05 January 2021

Ya , sure
Divide into taxable portion & exempted portion !

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 05 January 2021

You should first add such benefits and after that deduct the exemptions available

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 05 January 2021

Not that , 2 columns avilable , taxable portion , exempted portion !

For deduct , these amount not as that nature

ayusmita (Tax consultant) (5885 Points)
Replied 06 January 2021

All are exempted for government employees
simply there are two ways to show first
add all those with salary and show under head salary
then allowance under section 10 deducut all those amounts get the net salary
just crossed verify your calculation salary with after figure salary
or you can show the salary without adding those benifit exempted salary and in the exempted income session show all those incomes of exempted salary
in my opinion it's better to add and deducut