Arrears of Freedom Fighter Pension-Relief u/s 89

Hi Balu,

As far as I know not all sorts of pensions received by freedom fighters are exempt. Only the amount received consequent to a gallantry award being conferred on someone or an amount one gets in pursuance of a scheme approved by the Central government u/s 10(17)(ii) will be exempt in the hands of the recipient. The government had notified a scheme called the Swatantrata Sainik Samman (Honour to Freedom Fighters) Pension Scheme, 1980 in exercise of the powers conferred on it u/s 10(17)(ii). This scheme was originally floated on 15th August 1972 to mark the 25th anniversary of the Indian independence. In 1980 this scheme was made more liberal with a view to cover more people. Only pensions drawn by freedom fighters under this scheme are exempt. All other pensions in my opinion in the absence of any specific exemption notification would be brought to tax under the head "Income from other sources" u/s 56. Your point about the absence of employer-employee relationship is valid. But that doesn't automatically lead to the conclusion that the income isn't taxable at all. Section 56 is a default section. If the income doesn't fit into any of the four heads and isn't exempt, it'd be taxable u/s 56. The assessee won't be entitled to deduction u/s 57(iia) either since this isn't a family pension—-he himself is drawing it. The relief u/s 89 too it seems would elude the assessee.Thanks,CA Sanjeev Bedi--- In ICAI_CIRC_MEERUT_ CA@yahoogroups. com, "balunand" wrote:>> Is there an employer-employee relationship here? In my opinion you > should claim the entire amount as exempt.> > Regards> Balu> www.balunand. com> > > > --- In ICAI_CIRC_MEERUT_ CA@yahoogroups. com, "Gaurav" > wrote:> >> > Hi everybody,> > > > My Grandfather received arrears of freedom fighter and political > > pension during last year. Whether I can claim relief u/s 89 for > the > > arrear. If I can, whether their is any case law on this. Actually > our > > professional person is denying that we can't take relief. We are > > currently showing pension receipt under head 'Income from Salary"> > > > Please reply....> > > > Thanks in advance> > > > Gaurav Pancholia> > > > (pancholia.gaurav @ gmail.com)