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.
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Arrears of salary if taxable to legal heir ???
Whatever details available through Form 26AS and/or Form 16 of her deceased husband, prepare financial statement of his taxable salary with tax relief u/s. 89(1), and file return of the deceased uptill his death, through his legal representative. And disagree the demand of the lady, partly as the same was taxable under her deceased husband's PAN.
Only for salary arrears received till the time of death of her husband..
Family pension is given to the family member/s of the deceased employee, which is taxable in the hands of receipent under head 'IFOS'. So, no need to change that.
Unless you file the ITR of the deceased person through his legal representative, the tax liability of the lady cannot be transferred to her husband's PAN.
At the most the same can be deferred for some time period, by requesting for it as 'ITR under preparation'.
Her form 26AS would clarify her own salary, her family pension income and the salary arrears of her husband for period 1999-2009, received from his employer. (Even any correspondances in the matter will help you to arrive at final figures.)
Based on that you can reply accordingly, simultaneously prepare and file return of her late husband for the salary arrears.
No other option.
Good Luck...........
My Pleasure.......
Respected sir,
if Deceased has no PAN Card and arrears of Service pension and family pension are also received.at a time and TDS on that amount is deducted on spouse PAN what is the option to move on in above case.
Advisable to offer the amount as income of spouse of the deceased, and claim the refund.
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