Dear sir
One of our client a government employee retired from service during the year 2010-2011 . at the time of retirement , he received 1.5 lach as earned leave salary for earlier years. He would like to know whether he can avail the relief U/s 89 (1) or he has to pay tax for the entire amount. kindly guide us in this regard
In case of Govt employees earned leave salary is exempt from tax ,
as it is received at the time of retirement.
Pl Refer Section 10AA(i).
agreed.......
one our clint i.e. a widow, receiving family pension including arear of salary for the period when her husband was alive, pls tell me what will be the nature of family pension and arrear of salary in the hand of widow.
it will be taxed under income from other source...in case of family pension deduction will be allowed of lower of 1/3rd or 15000 rs.
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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