What You Will Learn!
- Meaning of Income From Salary (Retirement)
- GRATUITY [SECTION 10 (10)]
- Classification of Employee
- Computation of taxable part of Gratuity, in the case of employee covered by the payment of Gratuity Act 1972
- Computation of taxable part of Gratuity, in the case of employee not covered by the payment of Gratuity Act 1972
- Leave Encashment [Section 10(10AA)]
- Computation of Taxable Part of Leave Encashment
- Pension [Section 10(10A)]
- Retrenchment Compensation [Section 10(10B)]
- Voluntary retirement compensation [Section 10(10C)]
Description
Meaning of Income from Salary - Retirement
Contents:
1. Any Income shall be chargeable to tax under the head salary if there exists a relationship of employer- employee between the payer and the payee. Example:- Family pension, receipt from Firm by partners, MP/MLA remuneration, Director fees etc.
2. It does not matter whether the employee is a full-time employee or a part time employee.
3. Section 15(1)- salary income shall be chargeable to income tax on due basis or receipt basis which ever is earlier.
4. Salary due on last day of month v/s salary due on 1 st day of next month
Gratuity [Section 10 (10)] : Meaning of Gratuity
Classification of Employee :
Govt. Employee
Non. Govt. Employee
Important Note :
1. If gratuity received during the service period then it is fully taxable.
2. If gratuity is received by family member of employee due to death of employee then it is partly taxable in income from other source
Computation of taxable part of Gratuity, in the case of employee covered by the payment of Gratuity Act 1972
Computation of taxable part of Gratuity, in the case of employee not covered by the payment of Gratuity Act 1972
Leave Encashment [Section 10(10AA)] : Meaning of Leave Encashment
Govt. Employee - Fully exempt
Non. Govt. Employee - Partly Exempt
Important Note :
1. If Leave Salary received during the service period then it is fully taxable.
2. If Leave Salary is received by family member of employee due to death of employee then it is fully exempt.
3. Allowed period
Computation of Taxable Part of Leave Encashment
Pension [Section 10(10A)] : Meaning of Pension
1. Un commuted Pension
2. Commuted Pension
Computation of Taxable part of Commuted pension
Retrenchment Compensation [Section 10(10B)] : What is Retrenchment Compensation
Voluntary retirement compensation [Section 10(10C)]
Who Should Attend!
- Any Student who pursuing in B,com M,com BBA MBA 11th & 12th Commerce C.A. C.S. and C.M.A.
