An income tax assessee (An employee of public Sector Bank) has recd. arrears of Pension for F.Y. 2007-08 & F.Y. 2008-09. How will it be taxable in F.Y. 2009-10. Is any exemption available.
01 July 2010
The arrear pension for the F.Y. 2007-08 & 2008-09 received in the year F.Y.2009-10 is taxable in the year of receipt. However the assessee can claim relief under section 89 of the Income Tax Act
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