SIR
ONE OF MY CLIENT IS EX SERVICE MAN. THE ASST. YEAR 2018-19, HE RECEIVED DISABLED PENSION AND AREARS FOR DISABLEMENT PENSION. AS PER THE IT ACT THE SAME HAS BEEN EXEMPTED OR NOT. IF EXEMPTED WHICH ITR FORM TO SELECT E FILE FOR THE AY 2018-19 TO CLAIM EXEMPTION. AND ALSO INFORM SECTION OF THE IT ACT.
REGARDS
S. RAVICHANDRAN
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The entire pension, that is, service element (service pension) and disability element of disability pensioners is exempted from the purview of Income Tax. Disability Pension comprises of two elements, service element that is granted in terms of the length of service (subject to a minimum amount in cases where service rendered is less than pensionable service), and disability element which is granted in terms of the percentage of disability. There is no minimum qualifying service prescribed for service element or disability element, hence even if a person has a single day of service, he or she is entitled to disability pension. For individuals who have completed their minimum qualifying service for pension, their service pension becomes the service element for purposes of disability pension. Both elements are exempted from Income Tax and so are the arrears of both elements. The same has been clarified by the Ministry of Finance, Department of Revenue vide Instruction No 2/2001 dated 02 July 2001 and Instruction No 136 dated 14 January 1970, both of which can be viewed below.
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Instruction No 2/ 2001
F.No. 200/51/99-ITA.I
Govt of India
Ministry of Finance
Deptt of Revenue
Central Board of Direct Taxes
New Delhi, the 2nd July, 2001
1.References have been received in the Board regarding exemption from Income Tax to disability pension, i.e., “disability element” and “service element” of a disabled officer of the Indian Armed Forces.
2. It appears that field formations in certain cases are not uniformly allowing disability pension in spite of Board’s Instruction No 136 dated 14th January 1970 (F No 34/3/68-II(AI) ).
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 Armed Forces continues to be exempt from Income Tax.
4. This may be brought to the notice of all officers working under you.
Refer page 58 ... clause 88.3 from
Col. K. S. Chaudhary
Respondent: Ms. Gunjan Varshney CPIO DCIT
The applicant stated that he is retired Col. from the army and is physically handicapped and as per Government regulation his disability pension is totally free of tax, however, the bank which disburses the pension is deducting TDS. He informed that he has made several representations to the Ministry of Finance but no instructions have been issued by them to banks to stop deducting TDS. He emphasized that both service and disability elements are exempt from income tax. The CPIO agreed and stated that they have issued instructions to their field officers on 14/01/1970 and reiterated the same vide circulars dated 06/05/2000 & 02/07/2001 intimating that service & disability element are both exempt from tax. She submitted that in case of retired disabled defence officers it is for the controller of defence accounts to issue instructions to the respective pension disbursing banks.
Decision notice:
The CPIO is directed to write a communication to the CDA requesting to issue appropriate instructions to pension disbursing banks not to deduct TDS on service & disability element of disability pension of retired defence personnel. A copy of the communication should be endorsed to the applicant.
The appeal is disposed of accordingly.
Not fully exempted.......... each benefit over and above its exemption limits are taxable...
So, have to calculate each separately......
Respected Sir.,
Total receipts like as Following
| SALARY (MAR-JUN 17) | 285562 | |
| EL 240 DAYS (588496-300000) | 288496 | 288496 |
| LEAVE ON PRIVATE AFFAIRS | 220686 | 220686 |
| WAGE REVISION ARREARS | 66470 | 0 |
| D.A ARREARS | 2218 | 2218 |
| TOTAL | 796,962 |
Less :
HRA - Rs. 12800
FSFS & SPF - Rs. 825
Sec 80 D - Rs. 720 = (12800 + 825 + 720) = 14345
After Deductions Total = Rs. 782617
TDS Deducted Rs. 71,250
(Also he have some interest from FD, MF and Deductions...)
The maximum exemption available over leave encashment of Rs. 3,00,000/- has duly been considered in the calculation.
Leave on private affairs is taxable perquisite......
Arrears of wage are not taxed....
The calculation is OK... No more deduction (other than deduction under Chapter VIA) possible now.
Sir,
As per above Calculation no way for claim Refund for TDS amounts...
Am I right?
In this calculation deduction like 80C.. lic premium etc. are not considered (as said earlier, deduction under chapter VIA)...... that may reduce tax liability...... so just check that.
| Originally posted by : Dhirajlal Rambhia | ||
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In this calculation deduction like 80C.. lic premium etc. are not considered (as said earlier, deduction under chapter VIA)...... that may reduce tax liability...... so just check that. |  |
Okay... Thank You Sir...
SIRS
BY CLERICAL MISTAKE WE HAVE MENTIONED A ELIGIBILE ITC AS Rs.3.01 LACS INSTEAD OF ACTUAL Rs.1.84 LACS WHILE FILING THE GSTR-3B TABLE NO.4 ELIGIBILE ITC FOR THE MONTH OF APRIL 2018. NOW THE MISTAKE WAS FOUND.
HENCE, I HEREBY REQUEST YOU TO KINDLY CLARIFY HOW TO RECTIFY THIS MISTAKE.
REGARDS
S. RAVICHANDRAN
CAclubindia
