ITR1 - leave encasement and gratuity

Uttam 1
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Hello,

Can you please help me on the following?

  1. Which section do I declare in ITR1 the leave encasement amount which I got at the time of my resignation?
  2. Which section do I declare in ITR1 the gratuity amount which I got for the first time of my resignation?

I think both are non-taxable. Please clarify.

itr-1 leave-encashment income-tax-return gratuity
1 Answers

Gratuity would be taxable if five years of service is not completed.

Tax exemption on Leave encashment would also be limited to minimum of all below:

  1. The actual amount received
  2. The cash equivalent of leave balance (max 30 days per year of service)
  3. Maximum of 10 months of leave encashment, based on last 10 months average salary
  4. Rs. 3 Lakhs

You will have to use ITR-2 and show these amount under Exempt income section.

Pankaj Batra5212
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