Itr-4 ay 18-19

I am filing ITR-4 . Following queries are there.

In Exempt Income 

1) Interest from Public Provident Fund comes under which section.

2) Interest form  Rural Elec Corp - Tax free Bonds comes under which section.

3) Payout from UTI - MEPUS is tax exempt or not. If yes under what section.

4) Payout from UTI - Equity Fund ( Master gain 92) is tax exempt  or not. It yes under which section.

In Income from other sources whether all FD and bond interest can be clubbed.  In descripttion what to write.

 

Replies (3)

1. Interest received from PPF is exempt u/s 10(11) 
2. Though interest received from REC bonds are not tax-free, no specific provision for taxability of REC bonds. According to sec 56(2)(id) it read as follows, "income by way of interest on securities if the income is not chargeable to income-tax under the head "Profits and gains of business or profession" Hence it will be taxable under the head Income from other sources. However, TDS will not be deducted on such interest. 
3. Income from UTI will be exempt u/s 10(35). 
4. Payout (dividend) will be exempt in the hands of Shareholder as per sec 10(35). However, the company will pay DDT on the same. 
5. All interest income can be clubbed but to add more clarity, add columns and break the interest received and add a descripttion to every interest income. 
Please correct me if the question has an alternative view. 

Thanks. REC had issued Tax-free Bonds @ 6.25% interest. Interest is fully exempt from Income tax.

10(35) is not there in drop down  10(34) is there.

S.No 1 - is Interest Credited but not actually received.

 

1. I believe REC issues tax-free bonds u/s 10(15)(iv)(h) and if that’s been the case then the interest that you are about to receive will not be subject to tax irrespective of whether you have received it or not. 
2. The necessary column under which you can claim the exemption is u/s 10(15). However, make sure the bond comes under that category.  It should be available in your prospectus or features of such bond at the back of your bond certificate. 
Please correct me if the above solution has an alternative view. 

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