Mukesh (SE) 31 August 2013

Tax calc on amount received to wife after husand death

Dear Sir,

I want your feedback on below case :

Husband : Govenment Employee

Death Cause : Accidental Death

I Have some queries on below points can you please clear which things are taxable and which are not to wife after receive the same amount.

1)Death Gratuty

2)Insurance Claim (15 Lakh)

3)GPF Nomination (About 18 Lakh)

4) Leave Encashment (4 Lakh)

5) Amout which is available in bank in different format like FD, Bonds (10 Lakh)

6) PPF Amount (2 Lakh)

7) Post RDs

Reply Follow

2 Replies

Vallabh Parmar (Advocate) 01 September 2013

1) Gratuity is exempt us 10 of I T Act hence not taxable

2)Insurance claim is also exempted us 10 of I T Act

3)GPF is also exempted us 10 of I T Act

4)Leave encashment is also exempted us 10 of I T Act

5) if FD/bond are purchased out of income disclosed to the department then only interest earned during the year on such income is taxable as income from other sources . and principal amount not taxable

6) Interest earned on PPF is exempt us 10 of IT Act

7)Post RD interest earned during the year is taxable as income from other sources. Principal amount of investment if invested out of disclosed income then same cannot be taxed .