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Exemption under section 10

06 July 2018

Shall I declare Leave encashment, Gratuity and GPF amount for a retired govt employee (my father) in ITR, if his department has not shown these amounts in form 16. (Even If they are refusing for a revised form 16.)

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12 Replies

Dineshchandan (articled assistant) (84 Points)
Replied 06 July 2018

Are you asking whether not to report the income? It amounts to tax evasion which is illegal. You shall delcare the income and do tax planing, which is legal to reduce the tax burden.

1 Like

Anjali P Nair (ACA,ACMA) (582 Points)
Replied 06 July 2018

For a retired govt employee all these are exempted incomes under section 10.

You sholud declare all exempted income in ITR1 even if it is not shown in Form 16.

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CA Chirag Haraniya (Chartered Accountant) (902 Points)
Replied 06 July 2018

Yes, if you have valid documentary proof as your taxable income won't match with form 16 therefore query is surely going to come from department

1 Like

Nikhil Vyas (7 Points)
Replied 06 July 2018

So, it means if gross income in Form 16 is 6,00,000 and all three benefits (Leave Enc, Gratuity and PF) are of total 15,00,000 Then I can show total of 21,00,000 as gross salary in ITR and can take exemption under section 10, even if gross salary of ITR (21 lac) and form 16 (6 lac)does not match. As a proof, I have bank statement.

SHIRISH S S (Proprietor) (1016 Points)
Replied 06 July 2018

Show 15 lakh in 27 d of ITR form with appropriate section.

Show 6 lakhs in ITR-1 Salary plus Allowance plus perquisites.

Srinivasa Ganesh (Article Assistant) (456 Points)
Replied 07 July 2018

You need to show taxable income under head salaries and exempt income under Other, under head Exempt income which is available after ROW NO D14 in ITR 1

1 Like