Section 89 relief is available on pension recovered back also?

Section 89 relief is available on pension recovered back also?

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Section 89 relief is available on pension recovered back also?

Query:
Sir I have a query and request you to kindly clarify:
After my retirement in December 2017, I am drawing pension since January 2018. Now after recent revision of wages of employees we’d 1st November 2017, I have received revised commutation of pension. Due to increase In pension my gross pension is reduced and Bank has recovered the excess pension amount from January 2018 to date from revised commutation amount . Since commutation is non taxable but pension is taxable.
Please let me know if the recovery of pension by Bank can be reduced from total pension income for this FY for IT purposes while filing quarterly returns by Bank so that net income reflects in AS 26 and form 16.
Opinion:
Thanks for your query.
There is no direct or specific provision as such in the Income Tax law which permits the reduction of amount of regular pension adjusted against commutation amount of pension. However, the possibility of claiming relief under section 89 of the Income Tax Act-1961 may be explored in your case.  The amount of pension recovered from January 2018 till the date of recovery may be treated as “advance pension” and may work out the relief as per the mode provided under section 89.
Our small write up on section 89 may be accessed at following link:
https://thetaxtalk.com/2016/02/29/reduce-tax-liability-arrears-salary-claiming-relief-u-s-89-tax-liability/
In your case, it appears that you may be eligible for some benefit by virtue of section 89.

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