19 July 2016
I have received Pension arrears for the previous 8 years for which I plan to claim relief as per section 89.I have also received interest for the pension arrears and an yearwise breakup of the interest for each of the 8 years .My question is that can I get relief for the interest amounts by adding it , along with the pension to the respective years income and accordingly calculating the income OR do I need to recognize the entire interest in the current year and thus pay 30 tax on the entire interest income ?
20 July 2016
If,you opt for split up of pension arrears U/S 89,it is for both pension & interest amount in toto.No partial bifurcation of pension U/S 89 & interest in current year.
CAclubindia
