Respected Sir, my friend's father died few years ago. Now his mother receive his father family pension and last year received arrears of his salary for 1999-2009, This amount is being shown in the 26as of his mother,TDS has been deducted on these arrears as well. Regular family pension of his father is also being shown in her 26as. Arrears are due to pay revision or change of post back dated, thats not clear. Now will this arrears is taxable or it is capital receipt? she already includes her husband family pension in her ITR. . She filed the ITR without mentioning the arrears amount so a mismatch arise as of difference in 26as. How to handle the situation ? if she needs to consider those arrears in her revised ITR and calculate accordingly or reply to notice by not accepting the situation. Also she cannot calculate relief under section 89 and she doesnot have full details of her husband salary or saving or salary bifurcations of that time and other details for 1999-2009. That time no ITR was filed by her husband. Also she comes in highest bracket of tax as of her own job so even a releif under 89 doesnot justify the increase in tax as after considering the arrears in her income. what steps needs to be done? Please advise. Thanks you.
CAclubindia
