Income Tax Liabilities of employee's wife on amount recevied

(1) family pension 20000 per month : Liable, Refer S.57 in the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent of such income or [fifteen] thousand rupees, whichever is less is allowed as a deduction.
(2) Death gratutity of Rs. 7 lakhs : gratuity received by the legal heir is taxable under the head" Income from Other Sources".

In both the above situations gratuity upto a specified limit is exempt under the provisions of sec.10(10) of the Income Tax Act, 1961.

For the purpose of exemption of gratuity under sec.10(10) the employees are divided under three categories:

1. Govt. employees - In the case of govt. employees the entire amount of death-cum-retirement gratuity is exempt from tax and nothing is therefore taxable under the head Salaries.
2. Employees covered under the Payment of Gratuity Act, 1972 - The employees covered under the Gratuity Act who receive gratuity have been given exemption which is the minimum of the following amounts. Gratuity received in excess of the minimum of the amounts mentioned below is included in the gross salary for the purposes of taxation.
   • The amount of gratuity actually received.
   • Fifteen days' salary (7 days in the case of seasonal employment) for every completed year of service provided the employment is more than six months.
3. Other employees - In the case of other employees the gratuity received or receivable on his retirement or on his becoming incapacited prior to such retirement or termination of his employment or any gratuity received by his heirs is exempt to the extent of the minimum of the following amounts. The amount received in excess of the sums mentioned below is included in the gross salary of the employee for the purposes of taxation.
   • Actual amount of gratuity received.
   • Half month's average salary for every completed year of service. (Average salary means the average of the salary drawn by the employee for 10 months immediately preceding the month in which he retires)

(3) Insurance Claim of Rs. 3 Lakh: Not Taxable, Any amount received as benefit from a life insurance policy, including bonus payment, is not included in total income. The only exception is the amounts paid as part of keyman policies. 

(4) GPF nomination Amount of Rs. 3.5 Lakhs: Not taxable, All payment which is received from a provident fund to which the PF Act applies or any PF fund of the government, is not included in total income.

(5) if any additional amount received from other Source like interest on deposit on joint account with her husband : Taxable
 

(1) liable to file income tax return : Yes

(2) if yes what type of amount on which she is liable to pay income tax : As discussed above

(3) Income tax slabs :  In case of individual being a woman resident in India and below the age of 65 years at any time during the previous year:-

subject to In case of an individual resident who is of the age of 65 years or more at any time during the previous year:-