My Husband retired in 2004 and died in 2005. after death, his service book got regularized and I received 8 lacs after deducting 2.2 lacs as income tax at source for his service arrears from 1996 to 2004(retirement).I received 1.5 lacs as life pension,50,000 as gratuity and 8 lacs as pension from 2005 to Feb 2010. In total i received 18+2=20 lacs from which 2.2 lacs has been deducted as income tax in 2009-10. Now , how will i file my return both for my husband and myself as I dont have the income tax return files of my husband. Madhusmita, Mumbai
As I see , you will have to file two returns of income – one for your husband and one for yourself. As it appears from your question, following income should be shown in return filed on behalf of your husband
1. Rs 10.2 (8 lacs +2.2 lacs ) of service arrears for the period 1996 to 2004
2. Gratuity of Rs 50,000 is tax free if total gratuity received by your Late husband does not cross Rs 3.5 Lakhs.
3. Rs 1.5 lakh received as life pension , if it was for period before your husband died.
Important to remember while filing return as representative assessee.
1. The return will be filed for Asst Year 2010-11 in name of your Late husband’s name. Use his PAN.In case your husband had no PAN ( Which I think may not be correct) , you can apply for PAN as representative assessee.
2. You will sign it in representative capacity .
3. You should claim the relief u/s 89 as the arreas have been received for1996 to 2004.
4. TDS of Rs 2.2 Lacs already paid should be deducted from whatever tax is computed.
5. Pay the tax if there is any payable amount by quoting the PAN of your Late Husband.
Your return
The receipt of pension of Rs 8,00,000 for period 2005 to 2010 (after his expiry) has to be added in your income as income from other source. You can deduct Rs 15000 as standard deduction .
I suggest you claim relief u/s 89 of the I T Act as the receipt is related to Fy 2005 to 2010.
Last sugegstion
Take help of a good C.A for computing the tax and relief u/s 89.
The receipt of deceased salary is a capital receipt and cannot be brought into tax.
I T Act has provision u/s 159 and 168 to deal with income which arises to a decease person before his death and after his death.