Dear Experts,
My mother retired from a government office (Delhi Administration) last financial year (FY15-16), i..e. AY 16-17. She was working as a teacher. I am in process of filing form ITR2 in this case. However, I have few queries as mentioned below and hope you could share feedback/clarifications:
Question 1) As I understand below income components are tax free for the government employees (or otherwise). Please confirm if my understanding is correct for each point -
a) General Provident Fund (GPF) - u/s 10 (11)
b) Gratuity - u/s 10 (10) (i)
c) Commuted value of pension - u/s 10 (10A) (i)
d) Leave Encashment - u/s 10 (10AA)
e) Leave Travel Allowance (LTC) - u/s 10 (5)
f) Life Insurance (endowment) policy proceeds - u/s 10 (10D)
Question 2) For the items mentioned above, please suggest how to report these in ITR2 form. As I understand there is only one sheet " EI - Details of exempt income". Should I report these items under point 5 on this EI sheet "Others"? In case there is no need to report any particular item, then please suggest accordingly.
Question 3) Is monthly pension part of salary income of retired government employee, and fully taxatble in the relevant year?
regards,
Akshay
CAclubindia
