Relief u/s 89

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2013 Please give advise on relief u/s 89 . I have recieved arrears on salary since 1999-2000 financial year to 2012-2013 Rs.1238140 / - as on Financial Year 2013-2014 . So What amount of Tax Charged on this income.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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22 September 2013 The computation of 89(1) relief is as follows.

1) Compute tax on total income for the year excluding arrears

2) Compute tax on total income for the year including arrears for such year

3) 2-1

4) Compute taxable income for the current year in which year arrears received excluding arrears

5) Compute taxable income for the current year in which year arrears received including arrears

6) 5-4

7) 89(1) relief is 6-3.

Compute the relief as following above steps. If you don't want to claim relief then total arrears received shall be add to your current years income and compute and pay tax on that.

Note: if you didn't have any tax payment for the arrears received year then only you get the benefit of 89(1) relief otherwise not.

If you have any doubt then can ask here.

If you couldn't calculate 89(1) relief then please provide me the following details

1) Your income details for the arrears received year and savings for such year excluding arrears

2) Arrears received break up for each year

3) Income details for the year in which arrears received excluding arrears

4) arrears received in the current year.

5) Your mail ID and status of assessee and Male/Female and their date of birth also.

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