arrear of salary

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amit jain (Querist)
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16 November 2009 arrrears of salary of my deceased father were received by my mother. are they taxable or not..........the total arrears received are of rs. 4 lakhs.

thanks in advance
amit jain
aca

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Guest (Expert)

16 November 2009 it is not taxable under the head salary.

Its taxable as a income of your mother and taxable under the head income from other sources.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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16 November 2009 this receipt in the hands of the family is not in the nature of one from an employer to an employee. The deceased had no right or interest in this receipt. This payment is only by way of financial benefit to the family of the deceased Government servant, which would not have been due or paid had the employee been alive. In view thereof the amount will not be liable to income-tax.

http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/sec_015.htm

See q-183