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

Exempt income: gratuity and provident fund received on death may be tax exempt, but filing depends on the return threshold. Whether a surviving spouse must pay tax on provident fund and gratuity received on the husband's death turns on applicability of exempt income provisions for gratuity and provident fund receipts; qualifying amounts under those provisions are not taxable, while non qualifying amounts are includible in total income. Where receipts are taxable, the recipient must file an income tax return if the aggregate receipt exceeds the relevant filing threshold identified in the discussion.