01 February 2019
Calculate arrears as per 89(1) relief. By considering Arrears Calculate tax payable on total income including arrears in the year in which it is received. Calculate tax payable on total income excluding arrears in the year in which it is received. Calculate difference between (1) and (2). Calculate tax payable on total income of the year to which arrears are related, including arrears. Calculate tax payable on total income of the year to which arrears are related, excluding arrears. Calculate difference between (4) and (5). The amount of relief will be the excess amount of (3) over (6). No relief shall be allowed if the amount of (6) is more than the amount in (3).
CAclubindia
