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Mihir

Mihir Tanna  |1054 Answers  |Ask -

Tax Expert - Answered on Jul 21, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Asked by Anonymous - Jul 21, 2023Hindi
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I am a Scientist based in Lucknow. I received an award from the Dept. of Science and Technology. As part of this award, I get a fellowship of INR15,000.00/per month. How can I claim exemption for (15,000x12=180,000) it in ITR1 form under Sec 10 (17A). I do not see any place where I can mention the amount for the last year as exempt. Kindly advise Best regards

Ans: If you select online mode of filing ITR, under option "Gross Total Income" you will find schedule of exempt income.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Financial Planner - Answered on Mar 14, 2024

Asked by Anonymous - Mar 13, 2024Hindi
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I have retired from a private company on 20/06/2023 after superannuation. I have subsequently received PF settlement amount and gratuity. As per from 16 issued by my employer for the 3 months period, my tax liability is nil. But I want to show the income of PF and Gratuity. Under which section these have to be shown as income and under which section these have to be claimed as exemption, while filing the ITR-1. Please help.
Ans: When filing your Income Tax Return (ITR-1) after retirement, you'll need to account for your income from Provident Fund (PF) and Gratuity. Here's how you can handle these components:

Provident Fund (PF):

• PF withdrawals are taxable if you have not completed five years of continuous service. However, if you've been employed for five years or more, PF withdrawals are tax-exempt.
• If your PF withdrawal is taxable, you should report it under the head ‘Income from Other Sources’ in your ITR-1 form.
• If your PF withdrawal is tax-exempt (due to more than five years of continuous service), you don't need to report it in your ITR as taxable income.

Gratuity:

• Gratuity received by an employee on retirement is exempt from tax up to a certain limit as per the Income Tax Act.
• The exemption for gratuity is calculated based on the formula: (15/26) * (last drawn salary) * (number of years of service).
• The maximum exemption limit for gratuity is Rs 20 lakh, as per the latest tax laws.
• If the gratuity amount you received is within the exemption limit, you don't need to report it in your ITR as taxable income.
• However, if the gratuity amount exceeds the exemption limit, the excess amount is taxable and should be reported under the head ‘Income from Salaries’ in your ITR-1 form.

Here's how you can report these incomes in your ITR-1 form:

• If both your PF withdrawal and gratuity fall within the exemption limits, you don't need to report them in your ITR-1 form.
• If any part of your PF withdrawal is taxable, report the taxable portion under ‘Income from Other Sources.’
• If any part of your gratuity is taxable (i.e., exceeds the exemption limit), report the taxable portion under ‘Income from Salaries.’

Remember to keep all relevant documents, such as Form 16, PF withdrawal statement, and gratuity payment details, handy while filing your ITR. If you're unsure about any specific details or calculations, consider consulting a tax advisor or chartered accountant for personalised guidance.

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Prof Suvasish

Prof Suvasish Mukhopadhyay  |790 Answers  |Ask -

Career Counsellor - Answered on May 22, 2025

Career
My son got 95.299 percetile in jee mains. Didnt appear for advanced as he is preparing fot bits. He got CS business system in Thapar. Whats the best option through csab counselling. Whats the order of preference
Ans: With a JEE Main percentile of 95.2, your son is eligible for admission to several NITs and IIITs through CSAB counselling. His best options would be to prioritize NITs with strong computer science programs, followed by IIITs, and finally, GFTIs. A strong choice would be NITs like NIT Calicut, IIIT Allahabad, or VNIT Nagpur, followed by IIITs with CSE programs like IIITM Gwalior or IIIT Delhi.
Order of Preference for CSAB Counseling:
1. NITs with strong CSE programs:
Consider NIT Calicut, NIT Kurukshetra, SVNIT Surat, and VNIT Nagpur, as these are known for their good placements and infrastructure.
2. IIITs with CSE programs:
IIITs offer specialized computer science programs and are a good option if you're aiming for a career in software development or AI. Consider IIIT Allahabad, IIITM Gwalior, IIIT Delhi.
3. GFTIs (Government Funded Technical Institutes):
These are generally less prestigious than NITs and IIITs, but can still offer a good education. Consider COEP Pune or other GFTIs that have good placement records.
4. Thapar CS Business Systems:
While Thapar is a good institution, it's important to consider whether your son's interests align more with a traditional CS program or a more business-oriented one. He could also consider upgrading to a better CS program through CSAB if possible.
Important Considerations for CSAB Counseling:
Preferences:
Carefully consider your son's interests and career goals when filling out his preferences. Don't just focus on the top-ranked colleges; also consider the specific programs and their faculty.
Cut-offs:
Check the previous year's cut-offs for each college and program to understand the level of competition.
Placements:
Research the placement records of each college and program to see how well graduates are getting jobs.
Infrastructure and Facilities:
Consider the quality of labs, libraries, and other facilities that are available at each college.
Location:
Think about the location of the college and whether it's suitable for your son's needs.
By carefully considering these factors and prioritizing the right choices, your son can maximize his chances of securing a seat in a good engineering program through CSAB counselling.

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