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Question ID : 43319

RELIEF OF SECTION 89(1) FOR PENSIONER

HELLO MEMBERS, I had a query related to following: An assessee is a pensioner but due to default of Bank Department he did not receive his pension of the FY 20-21 during the year. After correction, bank give his pension of FY 20-21 in the current financial year (that is FY 21-22) along with pension of current FY 21-22. Now my question is Can assessee get benefit of Section 89(1) that is relief for arrears of salary (Pension) received during the FY 21-22 ? If yes, how will we treat it? as arrears of salary received or something else?

Posted by JYOTI MAHAJAN on Jul 05, 2022

Filed Under Income From Salary

Answer ID : 81543

No. As the salary is not received due to default of Bank and not employer, it cannot be considered as arrears of salary and relief under section 89(1) cannot be claimed. It can be considered as salary (pension) and it is taxable in the year of receipt.

Posted by CA. chunauti dholakia on Jul 11, 2022