Pension arrears and TDS

Dr.Jyothish Vijay (Dr) (214 Points)

05 February 2020  

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?