I am a senior citizen. I am 68 years old.

I have income from the dividends of mutual funds and interest from company fixed deposits. I regularly file an ITR 2.

I had given a loan to one of my cousins, but he is neither returning the principal amount, nor paying any interest. I had, therefore, filed a legal suit against him for recovery of my dues and I incurred expenses worth Rs 45,000 for court stamp charges and advocate fees.

Can I set off this expense of Rs 45,000 against the other income from dividends and interest?

I would be obliged to have your reply. If yes, under which column should I claim it, because I cannot find any column in the new ITR 2

Ans: You can claim deduction under Section 80D and not 80L.

Yes, senior citizens aged 60 years or more can claim exemption under Section 80D for medical expenses, if you do not have health insurance coverage.

You can claim maximum deduction of Rs 50,000 in a financial year for the expenses incurred as per the limit of Section 80D.

Ans: In my view, pending refund is nothing to do with escaped income of professional fees. As ITR is processed without any defects, refund will be issued. However, it is advisable to revise return and offer all the income correctly in Income Tax return.

Ans: After retirement you were working on as profession on full time basis, thus, it will be chargeable under the head Income from Business and profession. If your profession is covered by list of profession mentioned in 44AA and gross receipt from profession is less than 50 lacs, you can opt for presumptive taxation and take 50% deduction. If presumptive taxation is opted, you can file ITR 4 else ITR 3 is applicable.

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.