1070 Do salary exempt allowances belong to planet mars and not section 10 for return selection? Video Link - https://youtube/watch?v=O9ebDn_Jo6I Narration - By Amlan Dutta Case Methodology - Harvard Case Model In the tax season , many tax payers would call me up and say that they have filed their returns for salary and filed ITR 1 and much luxuriously ignored salary exempt allowances i.e transport allowance , LTC , gratuity etc etc and therefore didnt declare i in their returns ! I was surprised when they told me that their consultants think that the salary exempt allowances are not comparable to other exempt allowances declared under section 10 and therefore ,if exempt allowances are limited to salary , they can be comfortably ignored ! Firstlt , this is a stupid understanding with no backup and totally misadresses the issue . Secondly , salary exempt allowances dont belong to mars ...they also are covered under section 10 much like all other exempt stuff ....any of this exempt things , for example , LTCG on stocks , dividends in lovcal companies etc , Gratuty from salary etc etc ( when exceed 5000 Rs in totality), it is expected from the taxpayer that they declare such credit and their nature in the exempt income schedule ! Why ? So that the assessing officer understands why such credit arising from any head has not been offered for tax ! A retired person may get salary credit of 20 lakhs comprising 10 lakhs exempt gratuity ....will the assessing officer get a dream that the retired officer has a gratuity of 10 lakhs if he doies not declare it in return ! The assessing officer will then expect a tax for salary credit of 20 lakhs until tax payer while filing return clearly declares that since 10 lakhs was gratuity income , so he did not offer it tax since it falls under exempt income under section 10 .So he will fill up ITR 2 When you understand concepts like this , you will see how consultants , your own office accounts people etc fool you at every stage ! I want to educate you so that you become a power like me and fight for your rights ...i solved two cases like this in my own office but iw as solving cases for people who saw life 30 years more than me ...today i share this with you so that your kids who are 30 years less than me , when they are born , are presented with a beautiful people who are nor castigated for dereliction of duties and accounted for fooling other people! Jai Hind , Amlan Dutta
Posted on: Sat, 13 Dec 2014 06:16:56 +0000
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