How to calculate tax for arears of several years

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How to calculate tax for arears of several years

I am a retired SR.citizen and received pension arears of Rs. 10 Lacs from 2006 to date. Please let me know how much amount to be reported for the current financial year and also for previous years

Profile photo of Anant Saxena Asked By: Anant Saxena 1 replies 0 helpful answers Last Updated: 9 months, 2 weeks ago
  • Profile photo of Anant SaxenaAnant Saxena
    Participant

    I am a retired SR.citizen and received pension arears of Rs. 10 Lacs from 2006 to date. Please let me know how much amount to be reported for the current financial year and also for previous years

  • Profile photo of Roohi RasheedRoohi Rasheed
    Moderator

    The entire amount of Rs.10 lacs, arrears of pension shall be reported in the Financial year in which it is received and you will be liable to pay taxes as per the tax rates applicable in the year of receipt.
    But the total income is assessed at a rate higher tax rate (that is in the year of receipt) otherwise it would have been assessed with the respective financial year.
    As it is assessed on a higher rate, a relief as per Section 89 is provided by law which can be can be claimed from the tax amount as computed in the Income Tax Return. Also, it is mandatory to file e-Form 10E at the Income Tax Website for claiming the relief under Section 89 in the return of Income.

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