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Hardik

Hardik Parikh  |106 Answers  |Ask -

Tax, Mutual Fund Expert - Answered on Jul 23, 2023

Hardik Parikh is a chartered accountant with over 15 years of experience in taxation, accounting and finance.
He also holds an MBA degree from IIM-Indore.
Hardik, who began his career as an equity research analyst, founded his own advisory firm, Hardik Parikh Associates LLP, which provides a variety of financial services to clients.
He is committed to sharing his knowledge and helping others learn more about finance. He also speaks about valuation at different forums, such as study groups of the Western India Regional Council of Chartered Accountants.... more
Mrigank Question by Mrigank on 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

Ans: Dear Mrigank,

Firstly, congratulations on your award from the Department of Science and Technology. It's indeed a great achievement.

Coming to your query, the fellowship you receive as part of the award is exempt from income tax under Section 10(17A) of the Income Tax Act. However, the ITR-1 form does not have a specific field to report this exemption.

Here's what you can do:

1. You need to report this income under the head "Income from Other Sources".
2. Then, you can claim the exemption under Section 10(17A) in the 'Exempt Income' section of the ITR form.
3. In the 'Exempt Income' section, select 'Others' and specify the details of the exemption, i.e., fellowship received under Section 10(17A).
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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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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Sir should I choose bms banglore mechanical or vit chennai mechatronics. I prefer job rather than higher studies
Ans: Based on comprehensive analysis of placement data from reliable sources, BMS College of Engineering's Mechanical Engineering program demonstrates a BTech placement rate of 74% in 2023, with variations across years (89% in 2022, 72% in 2021), while the overall college placement rate stood at 62% in 2023. Student reviews indicate approximately 80% placement success specifically for mechanical engineering, with top recruiters including Mercedes, Wipro, and Volkswagen, alongside a 60% internship rate. In contrast, VIT Chennai's Mechatronics program shows a 51% placement rate with companies like Tata, Benz, Hyundai, KPIT, and GE recruiting students. However, VIT Chennai as an institution achieved an impressive overall placement rate of 98% in 2023 with 106 participating recruiters, generating 3,160 total offers in 2025 including 936 super-dream offers. While both institutions offer quality education, BMS Bangalore Mechanical Engineering appears more favorable for job-focused students due to its consistently strong mechanical engineering-specific placement record, established industry connections with automotive giants, and higher program-specific placement percentages compared to VIT Chennai's mechatronics specialization. Based on comprehensive analysis of placement data from reliable sources, BMS College of Engineering's Mechanical Engineering program demonstrates a BTech placement rate of 74% in 2023, with variations across years (89% in 2022, 72% in 2021), while the overall college placement rate stood at 62% in 2023. Student reviews indicate approximately 80% placement success specifically for mechanical engineering, with top recruiters including Mercedes, Wipro, and Volkswagen, alongside a 60% internship rate. In contrast, VIT Chennai's Mechatronics program shows a 51% placement rate with companies like Tata, Benz, Hyundai, KPIT, and GE recruiting students. However, VIT Chennai as an institution achieved an impressive overall placement rate of 98% in 2023 with 106 participating recruiters, generating 3,160 total offers in 2025 including 936 super-dream offers. While both institutions offer quality education, BMS Bangalore Mechanical Engineering appears more favorable for job-focused students due to its consistently strong mechanical engineering-specific placement record, established industry connections with automotive giants, and higher program-specific placement percentages compared to VIT Chennai's mechatronics specialization. Based on comprehensive analysis of placement data from reliable sources, BMS College of Engineering's Mechanical Engineering program demonstrates a BTech placement rate of 74% in 2023, with variations across years (89% in 2022, 72% in 2021), while the overall college placement rate stood at 62% in 2023. Student reviews indicate approximately 80% placement success specifically for mechanical engineering, with top recruiters including Mercedes, Wipro, and Volkswagen, alongside a 60% internship rate. In contrast, VIT Chennai's Mechatronics program shows a 51% placement rate with companies like Tata, Benz, Hyundai, KPIT, and GE recruiting students. However, VIT Chennai as an institution achieved an impressive overall placement rate of 98% in 2023 with 106 participating recruiters, generating 3,160 total offers in 2025 including 936 super-dream offers. While both institutions offer quality education, BMS Bangalore Mechanical Engineering appears more favorable for job-focused students due to its consistently strong mechanical engineering-specific placement record, established industry connections with automotive giants, and higher program-specific placement percentages compared to VIT Chennai's mechatronics specialization.All the BEST for your Admission & a Prosperous Future!

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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