The Income Tax Portal has modified its system so that Form 10-EE for taxation of income from retirement benefits account kept in a notified country may now be completed in accordance with rule 21AAA for Financial Year 2021- 22. Section 10 exempts, up to a maximum of Rs. 5 lakhs, any amount received as part of a voluntary retirement program drafted in line with established provisions under Section 10(10C).
In the ITR, taxpayers must choose ‘Pensioners’ in the ‘Nature of Employment’ area under the salary schedule. The pension income taxable as salary must be recorded along with the name, address, tax collecting account number (TAN), and TDS from the employer.