Retirement income - relevant ITR filing sections

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Akshay Dawar

Corporate Banking

25 Points Posted on 15 August 2016

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

Replies (4)

Udgam Koomar

Tax Technologist

1949 Points Posted on 15 August 2016

(1) Yes they are exempt

(2) Yo can use ITR1 also, combine all EI add it and mention it under EI just above signature

(3) Self Pension will be taxable whenever received under salary income

Akshay Dawar

Corporate Banking

25 Points Posted on 15 August 2016

Dear Udgam,

Thank you for quick reply.

Just a quick clarification on point 3.

This is monthly pension from Delhi goverment only in this case. I hope you are referring in this context in your reply. In that case this is part of taxable income. Right?

regards

Akshay

Venkatesh Dangeti

CA Final

885 Points Posted on 15 August 2016

Uncommuted Pension refers to Pension received periodically(Monthly). Any amount received as Uncommuted Pension is fully taxable in the hands of both govt and nongovt employees

Udgam Koomar

Tax Technologist

1949 Points Posted on 15 August 2016

Originally posted by : Akshay Dawar
	Dear Udgam, Thank you for quick reply. Just a quick clarification on point 3. This is monthly pension from Delhi goverment only in this case. I hope you are referring in this context in your reply. In that case this is part of taxable income. Right? regards Akshay