Arrear Received by pensioner

[Asish Kumar Nath]

Dear Expert,

My father retired from BSNL on 01.04.2007.  on September-2012 he received pension arrears,  gratuity arrears and pension commutation arrears which is cumulatively Rs.4 lacs. and his pension is also increased. From September bank has deducted TDS from his monthly pension.  Is this type of arrear is taxable?

He has a MIS in post office and a few Fixed deposit with bank. If the arrears is not table then is total salary will be  ( Total pension for the year + Interest from MIS for the year + Interest from F.D for the year). He has purchase a NSC worth Rs.1 lack in this financial year and as per new income tax rules interest from S.B a/c will not be taxable.

Please figure out how his taxable income can be relise?

AI Summary

Taxability of Pension, Gratuity, and Commutation Arrears Explained; Include in Income for Accurate Tax Calculation A pensioner who retired from BSNL in 2007 received pension, gratuity, and commutation arrears totaling Rs. 4 lakhs in September 2012, leading to an increase in monthly pension and TDS deductions by the bank. The query sought clarification on the taxability of these arrears. The response clarified that pension arrears are taxable, and gratuity and commutation arrears are taxable if they exceed specified limits. It was suggested to include these arrears with the pension and other income sources to compute the taxable income.