Pension arrears from 2006 to 2016 credited in bank account

ITR 514 views 8 replies

Good evening,

One of my client having pension income. His account credited with the amount 2,50,000 as arrears from 2006 to 2016 in the month of june 2016.

And he is having Other business income and it comes under tax audit.

How to take those pension arrears? whether exempted or full taxable??

Pl suggest

Replies (8)
fully taxable for current A.Y. however relief u.s 89 can be claimed
Originally posted by : Giridhar S Karandikar
fully taxable for current A.Y. however relief u.s 89 can be claimed

Thank You sir and how much amount i get as clain under 89?

you need to compute tax on total income as per the rates applicable for current A.Y. by including the arrears and without including the arrears and then find the difference.
afterwards you need to compute tax as per the rates applicable for the F Y. to which the arrears relate by including the arrears and also by excluding the arrears and find the difference.
if the amount of difference calculated for the current A.Y. is more than the one calculated afterwards then relief is admissible for the difference between the current A.Y. and previous years F.Y. else no relief can be availed

down load the "relief u/s 89 calculator from web"  and calculate.

refer rule 21A(2) for more details

Hi Sir, 

My father is a senior citizen & getting the pension arrears after 9 yrs , its monthly pension & all amount coming as arrears of around 9 yrs which comes to a big amount and the employer is not accepting the relief under section 89(1) and asking us to file return and get the refund from IT department.The total tax which comes as per 30% tax deduction is around eg 6 lakhs aprx but actual tax as per arrear yrs ( 2010-2018) should be around eg 1.2 aprx which is as per calculation of Form 10E ( calculated for tax pertaining to arrear yrs ). Our CA also suggest we can file Form10E as per section 89(1) and can get all the refund for the extra tax deducted for arrears by employer.

My question is if we upload form 10E while filing IT and ask for refund, will we get the refund of around eg 3.8 lakhs which is extra tax and my father is not liable for that extra tax as per his pension arrears. 

Will there be any issues in getting the refund for the extra tax deducted by employer for pension arrears.

Thanks

 

 

 

 

 

yes you can file the firm and get refund. no issues wud arise for the refund you get

Thanks for the information.

What all things needs to be taken care while filing the IT returns , form 16 , Form 10 E and any other form we need to submit please suggest.


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