My client receives arrears of pension from the central government every year.This year it is quite high.
Is he entitled to relief u/s 89?
karunaiselvan
(Financial Analyst)
(63 Points)
Replied 11 December 2009
Mohammed Dalal
(Chartered Accountant)
(163 Points)
Replied 11 December 2009
Originally posted by :FATEMA | ||
" | My client has receives arrears of pension from the central government every year.This year it is quite high. Is he entitled to relief u/s 89? |
" |
Yes relief will be available u/s 89
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 11 December 2009
Dear Mohammed,
Section 89 does not use the word "pension" anywhere.Can you please justify your answer.
P-A-W-A-N
(TAX - MANAGER AT GURGAON)
(541 Points)
Replied 11 December 2009
Rule 21A(5)
Read this to clarify your question
Ashutosh Agarwal
(Manager (Internal Audit))
(107 Points)
Replied 11 December 2009
Well here what is to be seen is was that arrear amount received was offered for tax in the year it had accrued if yes then there will be no tax implication and if not it would be charged to tax in the year of receipt thats it you cannot take any exemption u/s 89 this sec to avoid double tax and not a tax avoidance tool
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 11 December 2009
What does commuted pension mean?
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 11 December 2009
I can give u an example Fatema
say pension of a person is 10000 per month..while retiring a person can commute say half of his pension for next 10 yrs and collect it in advance..so he will get an amount may be some 5 lakhs for example.this 5 lakhs is commuted pension..then for the 10 yrs he can collect 5000( the otr half which he dint commute) as his uncommuted pension
neeraj maheshwari
(CA Final)
(35 Points)
Replied 11 December 2009
section 89 use for releif of gratuity. you are in mistake.
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 11 December 2009
Dear Neeraj,
Some calrifications.
Section 89 talks about relief if an individual receives any portion of his salary in arrears or in advance or receives profit in lieu of salary.
Relief for gratutiy can be calimed under setion 89(1).
sudhir rawal
(B.COM/PCC/ARTICLE/'O'LEVEL)
(314 Points)
Replied 11 December 2009
yes your client can receive relief u/s 89
but he should submit form 10E
https://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form10E.pdf
here is form you can see it
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 11 December 2009
Fatema i think u can claim the relief..cos sec 89 says any amount salary and in the definition of salary pension is also included....
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 12 December 2009
Dear Hareesh,
The pension received is an uncommuted pension and the reckenor says it is fully taxable.Relief can be claimed only for commuted pension in case of non-government employees.Commuted pension is fully exempt in case of government-employees.
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)