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Employers category in itr 2

D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)

14 August 2016

An officer retired voluntarily from BSNL.He is getting pension from Govt. of India,DOT O/O CCA Gujarat Circle,Ahmedabad.through Gandhinagar Post Office. In ITR 2 what will be his Employer Category to tick ? Govt or PSU or Others ?

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 14 August 2016

BSNL is Governmental company

D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)
Replied 14 August 2016

Sir , BSNL is CPSU. Employer category in ITR 2 is for those who are in employment.Here is a case of a pensioner who retired from BSNL but is receiving his pension from Govt. of India through Post Office. So can we not tick the employer category in ITR 2 Part A General as 'others' instead of Govt or PSU ?

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Udgam Koomar (Tax Technologist) (1949 Points)
Replied 14 August 2016

Sir, the category will be "NA" as the assessee is NOT in employment, he is not getting money due to some work that he is doing curently hence he is not employed according to me.

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D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)
Replied 14 August 2016

Right sir, Exactly I am of the same opinion. But In ITR 2 Part A General , one has to tick out of three categories only i.e. Govt or PSU or Others. Option 'Not Applicable' is not made available. What to do now ?

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 14 August 2016

When the pension is received by an assessee himself from his previous employer it shall be taxed under the head Income from salary. The pension received by you periodically seems to be uncommuted pension. Any amount received as Uncommuted Pension is fully taxable in the hands of both govt and non-govt employees.
BSNL is a fully owned Govt. company. Don't confuse between Govt co.and PSU. PSUs are those companies which were nationalized under an act of parliament. So you should choose employer category as 'Govt'

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D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)
Replied 14 August 2016

In view of various/ different opinions expressed above, concluding opinion of an expert CA supporting Income tax Departmental Act/Rules is solicitated please.

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 14 August 2016

Please see the attached screenshot from current AY ITR2, it clearly states EMPLOYER CATEGORY (If in Employment) >> and you are not in employment right now. In options, you have option to mark "Not Applicable" as marked in orange arrow.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 15 August 2016

When the pension is received by an assessee himself from his previous employer it shall be taxed under the head Income from salary.

Completely agree with Harshal.

Well said:: whether received from Governmental/PSU/Private/ any agency; department is concerned about its taxability. Any ITR never seen been rejected over employer's catagory, but for its taxability.

If taxable, has it been properly assessed or not?

We are least concern about any company and its catagory, if its not hurdle in our subjects.. That the employee who has retired from the same should know better.

On this CCI Forum platform we try to learn and discuss about subjects which matter us more. For any other matters there are abundent sites available on web

D. B. VAGHELA (Retired DGM(Finance)BSNL) (45 Points)
Replied 15 August 2016

Thnx Mr. Udgam Koomar for a condrete solution .

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 01 August 2018

Originally posted by : Udgam Koomar
	Please see the attached screenshot from current AY ITR2, it clearly states EMPLOYER CATEGORY (If in Employment) >> and you are not in employment right now. In options, you have option to mark "Not Applicable" as marked in orange arrow.