very useful article. The author may however may pl clarify on one thing that Earned Leave encashment, whether is exempted, for a person who is working in a public limited company and is encashing the EL balance on account of separation whether on retirement/resignation.
RE:Goog one
by Nitin Agarwal on Apr 20, 2007 03:27 PM Permalink
earned leave is non taxable in case of Govt Emp or public or Pvt ltd company under section 10(10AA).
RE:[object]
by Nagesh P on Apr 20, 2007 02:59 PM Permalink
Normal EL Encashment is taxable. I am talking about EL encashment on Separation. Pl confirm.
RE:Goog one
by Pawan Sachdeva on Apr 20, 2007 03:22 PM Permalink
Yes EL will be exempt from tax as was held in CIT V. R. V . Sahney (1986) 159 ITR 160, voluntary retirement from service is one such case which comes within the four corners of the expression " otherwise than superannuation"
After a long time the rediff forum has come up with some sensible and useful topic. I think you need to focus more on such important matters than very trivial and sensational issues. keep up the good work
RE:HUF
by UMESH BANSAL on Apr 20, 2007 03:10 PM Permalink
no its depends upon the situation. it depend on the factor no body can help u if u not tell all the factor related to this. Please consult ur ca
RE:HUF
by Pawan Sachdeva on Apr 20, 2007 03:28 PM Permalink
please note if you form a HUF it does not mean that any earning by u in individual capacity can be taxed as HUF rather it wud be taxed on individual, however rental income from property can be taxed under HUF and while doing so your HUF will get separate exemption and as individual your salary income wud be exempted. this pobably is the best way minimising the tax incidence.
RE:HUF
by sanath pachipala on Apr 20, 2007 03:29 PM Permalink
You and your spouse have to be assessed as individuals only. However if the properties are in your parents name you can form a huf and get the rental income in huf. so that you can save tax
This column is important for the person who have little knowledge of I. T. I am much interested in your regular advice on this subject. Plz keep it contiue. Plz also give some reference of I. T circular.
