Income Tax Returns filing: Taxable or not? PF and Gratuity to salary arrears, check if you need to pay tax
Income Tax Returns filing: Tax paying season is finally drawing to an end and most taxpayers have dutifully filed their returns. Those who have not, should do so immediately as the last date is August 31 and if they don't, then an amount of Rs 5000 or 10000 can be imposed on them. Notably, many people are still to do so, simply because of confusion over whether certain things are taxable or not. So, check out these 5 points:
1. Are retirement benefits like PF and Gratuity taxable? In the hands of a Government employee Gratuity and PF receipts on retirement are exempt from tax. In the hands of non-Government employee, gratuity is exempt subject to the limits prescribed in this regard and PF receipts are exempt from tax, if the same are received from a recognised PF after rendering continuous service of not less than 5 years.
3. Is leave encashment taxable as salary? It is taxable if received while in service. Leave encashment received at the time of retirement is exempt in the hands of the Government employee. In the hands of non-Government employee leave encashment will be exempt subject to the limit prescribed in this behalf under the Income-tax Law.