Pension arrears and TDS

TDS 267 views 6 replies

This is a query regarding my mother. She is a retd govt employee. She had not received 4 months salary in FY 2018-2019. She got those this year as arrears. She receives pension through State treasury. She opted to "revise" her ITR for AY 2019-2020 instead of going through form 10E and related formalities. Primarily she was worried about whether income tax rules would change this year and wanted to totally avoid it-hence opted to "revise". She paid taxes for the arrears received and used it to revise her ITR.

But now she faces an issue at State treasury:

1)They are asking her to show 10E or else they would cut TDS for the arrear. Please note that , they are talking about cutting TDS for where in fact full taxes have already been paid for ! What should be done?

 

2)Should she write and give a 10E form just to get over the formality? But if she does it would be as though as stating facts wrongly. Should we do that? is it illegal?

Replies (6)
Kindly inform them that the return for FY 2018-19 can be revised upto end of assessment year so we have done the same instead of filing form 10E and included arrears of salary and paid tax accordingly. Show them the revised return copy which includes arrears of salary
I have bit doubt.. she got arrear of FA 18-19 on which month or after April 2019, else you can file on 20-21

Thank you

I will try that.

Though form 10(E) is meant as a way to claim deuction under section 89, the busy clerks at treasury merely want an offline handwritten 10(E), wherein she has noted down neatly, which salary belongs to which year! This will enable them to easily calculate net tax and TDS after applying deuction under section 89

She got arrears in november 2019. She revised the returns of AY 2019-2020 adding this amount and paid tax

No... If arrears received in nov-19 then it will be shown in AY 20-21.

Money wise its effectively the same thing. She got arrears within the window period of the same Assessment Year. She therefore revised the ITR and paid tax (already done). Apparently she consulted some CA and they advised her that she may do so if she wishes to do it that way and she did.

I don't think its mandatory that, you have to submit only in AY 2020-2021. It becomes a necessity only if you receive arrears after the relevant AY


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