Categories
Pagination Scroll
Shriya

Exempt Income...
16 hours ago Solved
Sir, Can you please clarify if these both can be considered 'relatives' as per income tax act and does the property transfer between them qualify as 'non taxable'.

Ajay and Ajith are blood brothers. Ajith's wife is Anjali. Ajith passed away 5 years back.

Now if there is a transfer of property between ...
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
Though sister in law falls under acceptable relative definition here the case is different . If Ajith were alive , then this gift ( under eligible criteria - no compensation , registration done at sub registrar office , stamp duty paid etc etc ) would qualify under relative purview and not attrac...
  • 8 hours ago
  • ·
  • Like
  • ·
  • Select as Answer
Shriya

Exempt gift income u/s 56(2)(iv)...
Hello Sir,

What will be the treatment of tax if there is exchange of property/money within the relatives specified?

Suppose A gifts a land to B (A & B are Brother & Sister) and B gifts back a certain amount of money to A. This seems like a transaction however because they are 'relatives' specified und...
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
Understand that merely because someone is brother and sister ( falls under relative purview) , the transfer of any asset ( cash or immovable ) cannot be automatically treated as gift ....a proper gift deed has to be executed and registered ( only when gift deed is registered does it become legally ...
  • Yesterday, 11:41 pm
  • ·
  • Like
  • ·
  • Select as Answer
AYUSH
But sir remember these transactions are Been classified as cross relative transactions if the transaction are been done to avoid tax like as you say first property transfer between a to b and a certain sum was also transferred from b to a in consideration will lead to tax implications.
  • Yesterday, 12:21 am
  • ·
  • Like
  • ·
  • Select as Answer
SAIKAT DAS

Exempt Income...
is there such requirement to show inherited money in ITR??
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
Showing inherited or any form of exempt income is not any new requirement, it was always required to show exempt income . Inherited income being exempt needs to be declared in the return so that the tax authorities don't harass the assesse in the future ...here is the portion of the ITR where you ne...
Showing inherited or any form of exempt income is not any new requirement, it was always required to show exempt income . Inherited income being exempt needs to be declared in the return so that the tax authorities don't harass the assesse in the future ...here is the portion of the ITR where you need to declare inherited exempt income<br /><br />If you need to know the reason why exempt income(say 20 lakhs ) needs to be shown it is because the department needs to know why the amount has not been offered for tax . When assesse specifies that the amount is exempted because of inheritance /marriage etc etc provisions , the department can only then  understand else they would be expecting the  assesse to declare the income under relevant taxable head  and pay taxes for it ...
  • December 4, 2018
  • ·
  • Like
  • ·
  • Select as Answer
Paritosh Jain

Exempt gift income u/s 56(2)(iv)...
I wish to gift my wife Rs 65 Lakhs through bank cheque. What all formalities need to be completed for this.
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
You can execute a gift deed by visiting a lawyer ...the deed has a certain drafting style ..it mentions the donor and donee details , the relationship , the mode of payment , the amount , the tax payment details etc (lawyer shall be able to guide on this )...Since wife falls under the definition of ...
  • October 5, 2018
  • ·
  • Like
  • ·
  • Select as Answer
Vishal

Exempt Income...
Hi Sir, in my form 16, medical allowance reimbursement is shown under section 10 but it comes under section 17(2). Any reason why form 16 shows it in wrong section? Now if i need to show exempt income on medical reimbursement, do i need to mention the section 10 or 17(2)? Below is my form 16 entry:
...
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
No idea why they show it under section 10 ( though this happens in most places )...you will show medical reimbursement exempt income using section 17(2) ...refer video for the same.....
  • August 25, 2018
  • ·
  • Like
  • ·
  • Select as Answer
niranjan

Exempt Gratuity Income u/s 10...
sir i have a question. my brother was retired on 30/11/2017 he has received gratuity rs 20 lakhs but in form 16 only 10 lakhs amount was exempted from tax, can he clame tax exemption on another 10 lakhs or not. kindly ans me as soon as possible
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
At the time of receipt of gratuity the revision of Gratuity was not in place and therefore the assessee doesn't qualify for gratuity exemption of 20 lakhs .
  • July 27, 2018
  • ·
  • Like
  • ·
  • Select as Answer
DIVYANSH TRIPATHY

Exempt gift income u/s 56(2)(iv)...
hello sir . my brother is in job and getting salary around rs 650000/ p.a, now if he transfer money to father bank account rs 30000 every month so whether father is liable to tax or not
  • Show Placeholder
  • Hide Discussion
Samik Das
as father is a relative and as per IT Act it is not an income.
  • July 26, 2018
  • ·
  • Like
  • ·
  • Select as Answer
Amlan Dutta
Here son has gifted to father ...we have to check son from the purview of relative as per income tax ....since ,son falls in the definition of relative, any money received by son( relative ) is tax free i.e exempt in the hands of father ...it will not be taxable in the hands of father ...select quer...
  • July 26, 2018
  • ·
  • Like
  • ·
  • Select as Answer
PREM

Exempt Income...
Policy maturity amount received and TDS 2% deducted on benefit amount.now where to show this maturity amount with bonus in ITR 1,If it showed in income than have to pay tax according to sab.and showed in 10D than shows refund because 2% TDS is in 26 AS.what to do plzzz help
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
If TDS deducted (U/s 194DA) , it indicates that the policy maturity proceeds is taxable..if pension policy , then such happens when annual premium of policy ( booked after April 2012 ) is more than 10% of sum assured ....Here, you will have to offer entire maturity proceeds as income under other sou...
  • July 26, 2018
  • ·
  • Like
  • ·
  • Select as Answer
Vani

Exempt ULIP maturity U/s 10(10 D)...
Hi Amlan,
For Maturity proceeds of ULIP which I need to show under exempted income I would like to know if we should show the complete sum received at maturity OR sum received minus total premium paid. Here I look at premium paid as an investment versus an expense. I have seen your video and as pe...
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
You will show the total Unit linked insurance plan sum received at maturity exempt under 10(10 D)...this is the treatment , i will not complicate further ...say you receive 100 Rs at maturity and say paid 60 Rs premium , you will still show 100 Rs as exempt under section 10(10 D) ....Note : this is ...
  • July 26, 2018
  • ·
  • Like
  • ·
  • Select as Answer
Sachin

Exempt Income...
Hi ,

1. Since my mom was bank employee, my dad has received a insurance amount from the bank on her death. Any specific tab to show this exempt income received.
2. My dad has received a medical reimbursement amount of my mom, from medical insurance company. Since my mom was not alive to claim , my dad...
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
The medical payout is exempt in the hands of mother ...so , you/dad will have to file return on behalf of mom as legal heir ...the legal heir on behalf of the deceased will be claiming the amount as exempt under section 10...this will not be taxed in the hands of father ...for Life insurance produ...
  • July 24, 2018
  • ·
  • Like
  • ·
  • Select as Answer
Prasad Shirodkar

Exempt Transport allowance u/s10(14)...
Where do I show exempt income for travel allowance u/s 10?
Thanks again!
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
Check whether it is travel or transport allowance .......Transport allowance is given an exemption of up to Rs.19,200 per annum or Rs.1,600 per month. The sections under which this exemption is applicable are Section 10(14)(ii) of Income Tax Act and Rule 2BB of Income Tax Rules.......(Check attached...
Check whether it is travel or transport allowance .......Transport allowance is given an exemption of up to Rs.19,200 per annum or Rs.1,600 per month. The sections under which this exemption is applicable are Section 10(14)(ii) of Income Tax Act and Rule 2BB of Income Tax Rules.......(Check attached picture 1 for exempt transport allowance )<br />                                                                                                                                                                        <br /> As far as Travelling And Daily Allowances is concerned, that too is  completely Exempted From Income Tax" under 10(14(i) to the extent utilized by the employee (Check attached picture 2 for exempt transport allowance )<br /> <br />Literature - In accordance Rule 2BB of in IT Rules, 1962, any allowance (by whatever name called) granted to meet the cost of travel or tour or on transfer is completely exempted from tax in the employee’s hands.<br /><br />For the purposes of this clause “allowances granted to meet the cost of travel or transfer” include any sum paid in connection with the transfer, packing and transportation of personal effects on such transfer.<br /><br />Under this Rule the TA granted to the employees while they travel on tour or on transfer would be completely exempted from tax, Of course, the entire amount on this account should be spent to meet the expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit.<br /><br />If an amount is saved by the employee and is deposited/invested and or is otherwise shown as such by the employee, then he would be liable to tax on the unspent amount of the allowance.<br /><br />Under the same Rule 2BB another allowance which is completely exempted from tax is the daily allowance, whether granted on tour or for the period of journey in connection with travel, to meet the ordinary daily charges incurred, by the employee on account of his absence from the normal place of duty. There is no monetary limit on the exemption of this allowance but any allowance which is reasonable for the employee’s work or the employment, and which is granted to meet expenses wholly, necessarily and exclusively incurred for the purposes of the, duties of an office or employment of profit, would be exempted, provided it is actually spent by the employee concerned.<br /><br />For example, if an employee is allowed 1,200 per day as daily allowance for 5 days at Mumbai while he is away from his place of duty, i.e. New Delhi in connection with official work and he spends the entire amount and gives a certificate of amount actually spent by him, the entire amount of the daily allowance of 1,200 per day, namely 6,000 daily allowance for 5 days would be completely exempted from income tax under the aforesaid Rule under Section 10(14(i) Check whether it is travel or transport allowance .......Transport allowance is given an exemption of up to Rs.19,200 per annum or Rs.1,600 per month. The sections under which this exemption is applicable are Section 10(14)(ii) of Income Tax Act and Rule 2BB of Income Tax Rules.......(Check attached picture 1 for exempt transport allowance )<br />                                                                                                                                                                        <br /> As far as Travelling And Daily Allowances is concerned, that too is  completely Exempted From Income Tax" under 10(14(i) to the extent utilized by the employee (Check attached picture 2 for exempt transport allowance )<br /> <br />Literature - In accordance Rule 2BB of in IT Rules, 1962, any allowance (by whatever name called) granted to meet the cost of travel or tour or on transfer is completely exempted from tax in the employee’s hands.<br /><br />For the purposes of this clause “allowances granted to meet the cost of travel or transfer” include any sum paid in connection with the transfer, packing and transportation of personal effects on such transfer.<br /><br />Under this Rule the TA granted to the employees while they travel on tour or on transfer would be completely exempted from tax, Of course, the entire amount on this account should be spent to meet the expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit.<br /><br />If an amount is saved by the employee and is deposited/invested and or is otherwise shown as such by the employee, then he would be liable to tax on the unspent amount of the allowance.<br /><br />Under the same Rule 2BB another allowance which is completely exempted from tax is the daily allowance, whether granted on tour or for the period of journey in connection with travel, to meet the ordinary daily charges incurred, by the employee on account of his absence from the normal place of duty. There is no monetary limit on the exemption of this allowance but any allowance which is reasonable for the employee’s work or the employment, and which is granted to meet expenses wholly, necessarily and exclusively incurred for the purposes of the, duties of an office or employment of profit, would be exempted, provided it is actually spent by the employee concerned.<br /><br />For example, if an employee is allowed 1,200 per day as daily allowance for 5 days at Mumbai while he is away from his place of duty, i.e. New Delhi in connection with official work and he spends the entire amount and gives a certificate of amount actually spent by him, the entire amount of the daily allowance of 1,200 per day, namely 6,000 daily allowance for 5 days would be completely exempted from income tax under the aforesaid Rule under Section 10(14(i)
  • July 24, 2018
  • ·
  • Like
  • ·
  • Select as Answer
Prasad Shirodkar

Exempt PF interest...
Dear Sir:
Where should I show my PF interest earned from my EPF account? EPF account is opened by my employer at Bandra office.
Thanks & great effort on the website
  • Show Placeholder
  • Hide Discussion
Amlan Dutta
Employer providend funds (EPFO) are generally recognized in nature ...So, these are exempt under section 10(12) ...you will show it under exempt income reporting section - nature of income is recognized PF - exempt under section 10(12) ...Check attached picture and rest shall be clear to you ...th...
Employer providend funds (EPFO)  are generally recognized in nature ...So, these are exempt under section 10(12) ...you will show it under exempt income reporting section - nature of income is recognized PF - exempt  under section 10(12) ...Check attached picture and rest shall be clear to you ...the answer options - video shall guide you step by step........
  • July 24, 2018
  • ·
  • Like
  • ·
  • Select as Answer
Jitendra B
EPF Interest on PF Account is not generally shown in ITR. Only the PPF Account interest which you have will be shown in Other Income not to be included in taxable income.
  • July 24, 2018
  • ·
  • Like
  • ·
  • Select as Answer