Tax on pension arrears

Tax queries 172 views 2 replies

My father retd. Central Govt. Employee aged 85 years is getting a pension of Rs. 38100/-, This month he got Rs. 1,10,000/-  as arrears due to pension revision.

Please inform whether this shall be added to his current financial year's Income for calculation of I/Tax. If so his income will cross Rs. 5 lac limit pl. suggest remedies to avoid tax payment

Replies (2)
you can use section 89 for tax benefits
u can spread arears rs 1.10 L to period of areas up to a maxi. 5 years & Assess tax of in those period & can Claim Relief u section 89 IT Act


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