My mother receives Family Pension from Central Government for many years. In 2012, she got arrears for the last 6-7 years (since Jan 2006) together.
While filing for her tax return now, I'm computing the relief she is entitled to under section 89, but computing the income tax she was liable to pay since Jan 2006 in each of the financial year.
I have a question related to calculation of the income tax. For example, in AY 2007-08, her income is coming around 1.65 Lacs. The slab rate is - 0 Tax for income less than 1.35 Lacs (she was not senior citizen as per the definition in that year). Now deduction a standard deduction of 15,000 her income comes to 1.5 Lacs. If it was the actual case then, she would have done investment of Rs. 15000 more in 80C so that there is no tax liability.
Now while calculating relief u/s 89, can I use this logic of investment u/s 80C and take the relief?