Disability pension to retired army employee
Sushil Kamal (90 Points)
06 October 2018Sushil Kamal (90 Points)
06 October 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 06 October 2018
Yes, disability pension given to army personells is tax-exempt under income tax.
INSTRUCITON NO 2/2002 F. No. 200/51/99-ITA Government of India Ministry of Finance
Department of Revenue Central Board of Direct Taxes New Delhi. The 2nd July, 2002.
To, All the Chief Commissioners of Income - tax,
All the Directors General of Income-tax,
SUBJECT: Exemption from income tax to disability pension “disability element” and “ service element” of a disabled officer of the Indian Armed Forces – Instructions
Sir,
1. Reference have been received in the Board regarding exemptions income tax to disability pension i.e. “disability element” and “service element” of a disable officer of the Indian Armed Forces.
2. It appears that field formations in certain cases are not unitary allowing disability pension in spite of Boards – Instruction No 136 dated 14thJanuary, 1970 [F.No.34/3/68-IT(A.I) 3. The matter has been re-examined in the Board and It has been decided to reiterate that the entire disability pension, i.e. “disability element” and “service element” of a disabled officer of the Indian Army Forces contains be exempt from income tax. 4. This may be brought to the notice of all the officers working under your charge.
Yours faithfully
Sushil Kamal
(90 Points)
Replied 06 October 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 06 October 2018
Sabse pahele me upper wale se dua karunga ki Aapko mujse bhi jyada kamyabi bakshe.
Me bhi aap hi ki tarha ek Insan hu, aur jo kuch bhi ban paya hu woh upper wale ki dua aur aapni mehnat se. Sachche dil se mehnat karte jao, aur hamesha aageki socho.
Don't say you can't. Just repeat 'I will try & try, and I will succeed'. .... Me imandarise kahta hu (due to present circumstances) aajse 50 sal ke bad (my practical life), aap merese kaee jyada knowledgeable person hoge.... Good Luck & God Bless......
Sushil Kamal
(90 Points)
Replied 06 October 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 06 October 2018
"Purchase of land on 31-10-2012 for 550000 and sale value on 07-11-2017 is rs 352000 what will be the treatment of section 50C ??"
Here, where is the question of applicability of section 50C?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 06 October 2018
Sushil Kamal
(90 Points)
Replied 06 October 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 06 October 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 06 October 2018
Don't consider sec. 43CA here, its for builders & developers, considering the sell of 'stock in trade'.
For sell/transfer of capital assets as above, if SDV is 5.50 lakhs, and the purchaser has paid say, 3.50 lakhs..... the AO can add balance 2 lakhs as capital gains to seller..... and on other hand similar amount is added to purchaser under IFOS u/s. 56(2)(x). (here recent amendment in the sec. not considered)
Sushil Kamal
(90 Points)
Replied 06 October 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 06 October 2018
Here, the sections are applicable to both simultaneously and are independent to each other, and hence both are at loss. (To curb such activity its taxed at both end)
Sushil Kamal
(90 Points)
Replied 06 October 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160322 Points)
Replied 06 October 2018
SD Value 5.50 lakh....
Transacttion carried out at 3.52 L
Stamp duty paid on 5.50 lakhs transaction value.
Seller received 3.50 lakhs by banking mode.
Balance amount is deemed to be received by unaccounted cash.
Seller may declare capital gains based on 3.52 L, which is not accepted by AO and adds cash amount of 2 lakhs for calculating capital gains, based on sell value as 5.50L (sec. 50C triggers)
Buyer paid 3.52 L by cheque/DD and as per sec. 56(2)(x), got the benefit of 2 lakhs (by paying such amount less than SDV). This benefit is treated as IFOS, and taxed accordingly over buyer.
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