Will contributions made from salary to LIC’s Jeevan Suraksha when in employment qualify for standard deduction?
– Gaurav Kumar
If an employee receives pension from former employer then such amount is eligible for standard deduction. Annuity received from superannuation scheme started by former employer in discharge of its obligation to pay pension is taxable under the head salaries and hence qualify for standard deduction. Similarly, in case of LIC Jeevan Suraksha, contributions have been made from salary which otherwise would have been taxable under the head ‘salaries’. Hence it qualifies for standard deduction. However, for annuity started by senior citizen himself after retirement, such annuity not being in discharge of employer’s obligation to pay pension would be taxable under the head ‘income from other sources’ and not as salaries and hence not qualify for standard deduction. Standard deduction would be available from total salary income for Rs 40,000 for all sources taken together.
I retired in March last year. Can I claim senior citizen facility while filing my ITR for AY 2018-19 (FY17-18)?
A person who has attained the age of 60 years on any day of the financial year, is eligible to the minimum exemption limit of `3 lakh. Hence, if you have attained the age of 60 years or more as on March 31, 2018, then you can file your tax return as per the slab applicable to a senior citizen.
My son works abroad. He has rental/ interest income in India which is below taxable limit. Does he have to file ITR?
As per Section 139, a non-resident with income below taxable limit is not required to file ITR in India. However, if any TDS has been deducted on rental or interest income, it is advisable to file the return to avail the refund of TDS so paid.
I retired in 2014 August. I am to receive the last portion of my gratuity (`3.4 lakh). Do I pay tax on this amount? My total gratuity is `14 lakh.
—Sajeev M Cherian
Gratuity received by a government employee is completely exempt. For non-government employee, exempt amount is least of amount of gratuity received; last drawn salary x number of years of services x15/26; `20,00,000. If the `14 lakh received by you is least of all the three, no tax is payable by you on gratuity received.
The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to