Hello Everyone.. One of my client had worked in 2 company in the FY 2019-20..
1. He is having 2 Form 16 ,How to disclose in Income Tax ?
2. And he has received gratuity from previous company. Whether gratuity is taxable ? Where to disclose in ITR ?
3. He also recieved devidend from Equity Share, whether devidend is taxable ?
4. Should I disclose SB interest ? Or no need to disclose SB interest?
Kindly give me your thoughts
Thanks and Regards,
1. when you have received Form 16 from both the employer. You just need to add Income from 2 employers in your Income Tax Return under the head ‘Income from salary’ and the details provided in both the Form 16s as it is. Firstly, add details of employer with whom you have worked in the starting period of the year and then add details of the later one.
If the salary details from your previous employer are already added by your later employer in Part – B of his Form 16, you just need to verify that the details are correct and use the Form 16 of the later employer to file your return of income.
Note : Benefit of slab rate, Standard deduction of Rs.50,000 and Deduction u/s 80C, 80D ,etc. should be considered only once and not per Form 16 basis.
2.Exemption under sec 10(10) :
a) If Employee is Covered Under the Payment of Gratuity Act, The least of the following is exempt from tax:
. Last salary (basic + DA)* number of years of employment* 15/26
. Rs. 20 lakhs
. Gratuity Actually received
b) Employees Not Covered Under the Payment of Gratuity Act, The least of the following are exempt from tax:
. Last 10 month’s average salary (basic + DA)* number of years of employment* 1/2
. Rs. 10 lakhs
. Gratuity actually received
c) Gratuity paid by the government to government employees is fully exempt from tax.
3. In your case, for FY 2019-20 resident individuals having dividend from domestic companies in excess of Rs 10 lakhs were liable to tax at 10 per cent (plus applicable surcharge and cess) on such dividend under Section 115BBDA
However, from FY 2020-21 onwards, dividends from domestic companies and mutual funds are taxable in the hands of the shareholders and unit holders at their applicable slab rates and DDT has been abolished.
4. you should disclose SB interest in your ITR and SB interest is exempt:
upto 10,000 under section 80TTA in case of resident individuals (except senior citizens) and
upto Rs 50,000 under section 80TTB in case of resident senior citizens
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