Salary as well as pension and retirement benefits

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410 Points Posted on 05 January 2021
a state govt employee retire during the mid of year and receive salary as well as pension for the AY 2020-2021, she also recieved retirement benefits i.e, g.p.f , leave encashment, gratuity and computed pension . problem is that these retirement benefits first add in salary then deduct under section 10. any other provison
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On 05 January 2021 at 21:34 Report
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Quick Summary
This discussion clarifies how salary, pension, and retirement benefits for UK state government employees are treated for tax purposes. It explains that while benefits like GPF, leave encashment, and gratuity are generally exempt up to certain limits, they might initially be added to salary before being deducted as exempt income under Section 10. The consensus is to either add and then deduct these benefits, or to show them separately in the exempted income section for clarity.

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STUDENT
1631 Points Posted on 05 January 2021
Salary & Pension - Whole amount taxable

Commuted Pension - Exempt

Gratuity - Exempt upto Rs .20 Lakhs
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On 05 January 2021 at 21:55
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410 Points Posted on 05 January 2021
Sir all these benefits are exempted, my query is these benefits are add in salary then less from salary under section 10. or ony show these benefits in exempted income column
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On 05 January 2021 at 21:59
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STUDENT
1631 Points Posted on 05 January 2021
Ya , sure
Divide into taxable portion & exempted portion !
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On 05 January 2021 at 22:03
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Chartered Accountant
24588 Points Posted on 05 January 2021
You should first add such benefits and after that deduct the exemptions available
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On 05 January 2021 at 22:07
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STUDENT
1631 Points Posted on 05 January 2021
Not that , 2 columns avilable , taxable portion , exempted portion !

For deduct , these amount not as that nature
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On 05 January 2021 at 22:09
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Tax consultant
5895 Points Posted on 06 January 2021
All are exempted for government employees
simply there are two ways to show first
add all those with salary and show under head salary
then allowance under section 10 deducut all those amounts get the net salary
just crossed verify your calculation salary with after figure salary
or you can show the salary without adding those benifit exempted salary and in the exempted income session show all those incomes of exempted salary
in my opinion it's better to add and deducut
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On 06 January 2021 at 00:03
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410 Points Posted on 06 January 2021
Ok all of you, thanks a lot
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On 06 January 2021 at 08:39

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