guhan 17 March 2019

Taxation

My father is a tamilnadu state government servant.He was placed under suspension for nearly 5 and half years.Now the court has ordered that the period of suspension is to be treated as duty period.while he was under suspension,he was paid only 50 % of pay and allowances.Now he is claiming the arrears of pay and allowances since the suspension period was ordered to be treated as duty.Supposing if he was continuously on service,and getting his regular pay and allowances every month,his annual income will be within the income ceiling not attracting income tax deduction.Now the accumulated arrears of pay and allowances spreading over a period of nearly 8 years is around 6 lakhs for which whether he is to pay income tax now.kindly clarify.

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3 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 18 March 2019

There is a provision to segregate arrears income of previous years received this year to mark for previous years. Contact a Chartered Accountant, who will guide you properly.

G.L.N. Prasad (Retired employee.) 18 March 2019

Entrust this task to a Chartered Accountant, and let him guide you and file the ITR as it is the proper and safest way. This way also helps your father in other way, as the employer is also bound to deduct TDS and such segregation and filing of affidavit before employer requesting him not to deduct TDS may save much money and time in getting refund.