Arrears of gpf to govt employee - whether taxable or exempt

This query is : Open

GANESH DURAI IYER (Querist)
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28 July 2011 Dear Sir,

My Mother has retired from Govt Service in the year 2009. During the fy 2010-11, she has received an arrears towards General Provident Fund due to the 6th pay commission amounting to Rs.84794/-.

She has received this payment by Cheque during the FY 2010-2011.

Query is whether this payment should be considered at the time of Computation of Income and also whether she can get benefit of this payment under chapter vi-a.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 July 2011 Since this is a receipt, claiming deduction U/s 80C is not possible.

In my view the income is not taxable and can be declared under the head Income Exempt from Tax. It is not required to be added in the taxable income.