Income Tax Return Filing Reg

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256 Points Joined May 2019

I AM RETIRED PERSON FROM PVT COMPANY.I AM  80 YEARS OLD.NOW I GOT BANK FD INTEREST AND EPF FAMILY PENSION ONLY AS INCOME FOR 31-03-25.AT THE TIME OF MY RETIREMENT I GOT EPF AND GRATUITY AMOUNT RECEIVED BY ME.MY QUERY IS FOR CALCULATION OF TOTAL INCOME MAY I TAKE AS INCOME OF MY EPF AND GRATUITY AMOUNT OR ONLY TO SHOW AS EXEMPT INCOME IN RETURN FILING.WHICH ITR FORM IS APPLICABLE TO ME FOR 31-03-25.KINDLY CLARIFY.

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On 10 May 2025 at 10:01 Report
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Master in Accounts & high court Advocate
9066 Points Joined December 2011

As a retired person aged 80, you're considered a senior citizen, and your tax implications might differ.

Let's break down the tax treatment for your income sources:

EPF and Gratuity Amount - *EPF*: The EPF amount received at retirement is generally exempt from tax, subject to certain conditions. - 

*Gratuity*: Gratuity received from a private company is taxable, but there's an exemption limit of ₹20 lakhs (plus dearness allowance) for gratuity received from a private company. Tax Treatment for Current Income -

*Bank FD Interest*: Interest income from bank fixed deposits is taxable. - 

*EPF Family Pension*: Family pension received from EPF is taxable, but a standard deduction of ₹15,000 or 33.33% of the pension, whichever is lower, is allowed. ITR Form Applicability - 

*ITR-1 (Sahaj)*: If your income consists of salary, pension, interest, and dividends, and you're not required to report business or professional income, you can use ITR-1. -

 *ITR-2*: If you have capital gains or foreign assets/income, you might need to use ITR-2. Calculation of Total Income -

*Exempt Income*: You can show the exempt portion of EPF and gratuity as exempt income in your return filing. - 

*Taxable Income*: Include the taxable portion of gratuity and other income sources (bank FD interest and EPF family pension) in your total income calculation. Recommendations - 

*Consult a Tax Professional*: To ensure accurate tax calculation and compliance, consider consulting a tax professional or chartered accountant. - 

*Verify Tax Exemptions*: Verify the tax exemptions applicable to your EPF and gratuity amounts, as well as any other income sources. By following these guidelines, you'll be able to accurately calculate your total income and file your tax return accordingly [1].

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On 10 May 2025 at 14:45


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