Desesed family income tax filing

[Vinod Nayaj]

Wether wife has to pay the income tax on the composition received on death of her husband like PF,Gratuty.

Thank you

[DR.MARIAPPAN GOVINDARAJAN]

If the compensation received is exempted no tax is liable to be paid. If it is not exempted tax is liable to be paid. Income tax return is to be filed if the amount received is more than ₹ 2,50,000/-

[KASTURI SETHI]

Though I am not expert in Income Tax Act, I am of the view that PF and amount of gratuity both are exempt from Income Tax in this situation also.

[MADAN RAHEJA]

Sh. Sethi ji is absolutely correct. Section 10(10)(iii) and Section 10(11) of Income Tax Act, dealing with incomes not includible in total income, may be referred in this regard.

[Ganeshan Kalyani]

I too of the same view as expressed by Sri Kasturi Sir. Section 10 of the Income Tax Act, deals with exempted income.

AI Summary

Widow's Provident Fund and Gratuity Generally Tax-Exempt Under Income Tax Act Sections 10(10)(iii) and 10(11) A query was raised regarding whether a wife must pay income tax on compensation received after her husband's death, such as Provident Fund (PF) and gratuity. The responses indicated that if the compensation is exempt, no tax is due. Specifically, PF and gratuity are generally exempt from income tax under the Income Tax Act, as mentioned in Sections 10(10)(iii) and 10(11). If the total amount received exceeds 2,50,000, an income tax return must be filed. The consensus among the respondents was that these amounts are typically exempt from tax.