I am not fully equipped on how income tax will be calculated on the money he is due to receive, can you please help with the answer?
The ballpark amount he is going to receive is in between 30-35 lacs.
Also, as the factory has already been closed and his pending amount will be cleared eventually in FY 17-18 will it be advisable if he files for income tax return for this year?
2. Gratuity: For specified govt employees u/s 10 (10) (i) it is fully exempt. For others it is based on calculation either as per Payment of Gratuity Act, 1972 or as per Income Tax Act. Subject to Maximum of Rs10 lakh.
3. GPF = We are assuming you are asking about withdrawal from general provident fund. This will be fully exempt since your father have worked for more than 5 years.
4. If your father's total income exceeds the threshold limit, then he is supposed to file income tax return. For age below 60, it is Rs2.5 lakh, and from 60 to 80 years basic exemption limit is Rs3 lakh.
One needs to file tax returns if the total income received in a financial year exceeds the threshold limit.
If required, you can take help from a professional CA.
Ameet Patel Ameet N Patel is a chartered accountant and former President of Bombay Chartered Accountants Society - BCAS
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