Question ID :
40645
PENSION
A retire from govt. job and he was entitled for pension. How ever due to some disputes pension was not released to him and meanwhile he expired. After two year from his death wife of A received pension from the date of retirement upto date of death of A apart from this arrear of pension was also received. Query here is whether pension received by wife is taxable in her hands of. if yes whether she can claim relief u/s 89. Or it is exempt in her hand. Thanks
Posted by
SUNIL KUMAR AGARWAL
on
May 07, 2020
Filed Under
DIRECT TAXES
In this case Section 159 of the income tax act will apply. As per this section:-Where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased.
Subsection 2 of the section 159 clearly mentioned that all the provisions of the Income tax act shall apply to the legal representative .
Hence, in my view all provision will be applied.
Thanks & regard
Posted by
CA. SATISH CHAND GARG on
May 07, 2020
Answer ID :
80517
Yes. Section 159 will be applicable. Wife of deceased is liable to pay tax as legal representative. She will also be entitled to all deduction, which would have been available to deceased. She is required to register as legal heir and file return on behalf of deceased.
Posted by
CA. chunauti dholakia on
May 08, 2020