To claim the tax levied on leave salary encashment.

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My dad has been retired a year ago & he got his leave cash enhacement. But tax has been deducted from the organization askins us to claim through IT as it is Tax Exempted. And while trying to file ITR, we dont have an option to claim as like Section 10 AA.

ANy pointers how to do it?

Replies (8)

tell to the company in which your father was working to revise the tds return and then get the updated form 16 and file ITR.

Jothi,

Your father is Government employee or non Government employee...?

in case of government employee , leave salary is exempt from tax under section 10(10AA)

in case of non government employee , leave salary is exempt from tax subject to certain conditions

 

if income tax return is still pending , then

you can file returns for financial year 2014-15 and 2015-16 only

please ensure that TDS amount has been deducted from your dad's income, is appearing in form 26AS

if Ok.....

File ITR -1

Salary (if, for some months) and pension received during the year should be shown under head " Salary" and do calculate tax liability accordingly

leave salary has been received during the year and it is exempt from tax (subject to provision of Income tax act) ,
it should be shown in ITR -1
in line:  D20 Exempt Income only for Reporting Purpose (If agricultural income is more than Rs. 5000/- use ITR-2 or 2A)

 

Excess tax deducted as TDS is refundable and you can claim by filing income tax return
you will calculate tax on total income excluding exempt income

It needs to be issued through Form 16. It is the employer's responsibility to allow tax exemption upto the limit prescribed in IT Act

Hi ,

Thats what,under which colum we should add that?

Dont find an option in ITR form to claim this.

"Thats what,under which colum we should add that? Dont find an option in ITR form to claim this."

as explained above,

leave salary has been received during the year and it is exempt from tax (subject to provision of Income tax act) , it should be shown in ITR -1 in line: D20 Exempt Income only for Reporting Purpose (If agricultural income is more than Rs. 5000/- use ITR-2 or 2A)
 

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