A government employee received arrears of pension for multiple financial years in December 2021. The query confirms that this pension amount is taxable and not exempt. To reduce the tax burden, the employee should claim relief under Section 89(1) by submitting Form 10E. The arrears should be declared under the 'salary' income head.
A government employee received an amount of Rs.17.21/- lakh towards arrears of pension for FY 2019-20, 2020-21 and 2021-22.
This amount he received in December 2021.
The questions are: (1) Whether this amount of pension is exempt and (2) If it is not exempt, where should this amount be shown - in which Annexture - in Form 10E of income tax?