Family pension disclosure

Hi,

A lady's husband died on 2013.

Her husband was a retired employee of a PSU Bank.

She too became retired on 2018 from her PSU bank.

She received family pension of around Rs 80,000 from 2013 onwards and she has not disclosed it in her tax returns.

From this year i.e. AY 2021-22, she received around Rs 1 lakh as family pension.

Should she start disclosing that income now since she is worried about it?

She is a senior citizen afterall having pension income and bank FD Interest as major source of income.

Will income tax official pick her file for scrutiny etc?

Replies (2)
Quick Summary
A retired bank employee received a family pension from her late husband's PSU bank employment since 2013 but didn't disclose it in her tax returns. Now, with the family pension amount increasing and new tax provisions allowing officials to review past years, she's concerned about potential scrutiny. The advice is to always declare income accurately, as even with a senior citizen's exemption limit, non-disclosure can lead to issues.

Effective 1st April 2021, new tax provisions allow tax officials to back 3 previous years from the current assessment year. Before that, they could go 6 or 7 years back.

Income declaration should always be accurate in each person's ITR.

I think her exemption limit is not crossed

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