QUESTIONS & ANSWERS
Spread over benefit for pension
Your advice on pension arrears in The Hindu dated February 16 is useful. As pointed out by you, for recent retirees, the spread over may not be of much use. But for aged pensioners whose other income is low, the spread over benefit will be useful as liability will stand reduced. I am not, therefore, sure whether I will be able to have the working done in Form 10A before the due date for filing return. Could you suggest to the government some steps for persons like me living in a village to enable me to get relief even at the time of tax deduction at source?
For getting spread over relief under Sec. 89, it is not necessary that the return should be filed before the normal due date.
A belated return for assessment year 2009-10, which is the relevant assessment year for arrears received during the financial year 2008-09, can be filed till March 31, 2011, though one need not wait for such a long time. There is, therefore, no need for apprehension of a belated return losing the spread over benefit under Sec. 89, even if not filed before the end of July 2009.
The easier course could have been for the banks to assist the pensioners so that the relief is taken into consideration at the time of disbursement itself.
If the banks organise an assistance cell even by outsourcing, they will be rendering a useful service for a class of persons, who would normally be depositing the receipts with them. This can be done at least for arrears to be paid during the present financial year.
S. RAJARATNAM
Printer friendly
page
Send this article to Friends by
E-Mail
Business
