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Central, State and PSU government employees in India number ~28 million. Compliance is straightforward — Form 16 from DDO, ITR-1 filing, GPF / NPS contributions under Section 80C, Group Insurance, LTC exemption, and pension/gratuity at retirement. FilingLab handles every nuance — DA / HRA / LTC structuring, 7th Pay Commission allowance treatment, House Building Advance (HBA) interest deduction, leave encashment exemption.
Tax angle for you
Govt salary: ITR-1 if ≤ ₹50 lakh + no capital gains. LTC exempt for 2 journeys in a 4-year block. Gratuity exempt up to ₹20 lakh. Leave encashment on retirement exempt up to ₹25 lakh.
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What you actually need
FAQ
Pension from govt is fully taxable as salary. Commuted portion is exempt: 1/3 of pension (with gratuity) or 1/2 of pension (without gratuity). Family pension: 33.33% standard deduction up to ₹15,000 / year.
2 journeys in a 4-year block (current: 2026-29). Air: economy class. Rail: AC II tier. Within India only. Bills required.
Section 24(b) deduction up to ₹2 lakh / year for self-occupied property. HBA interest above 2.5% (govt rate) reduces taxable salary.