02 November 2009
While calculating relief for the past 4 years can I calculate it as under.
a person gets arrears of Rs.1,00,000 for 2005-06-25000 2006-07-25000 2007-08-25000 2008-09-25000
Depending on the totalincome can I include the first two year arrears to respective previous years and can I show the next two years arrears in the year of receipt. I need a reply very urgently..
02 November 2009
Relief under section 89(1) is to be calculated in the year in which the arrears are received. Further arrears of an year should be added to the income of that year alone. In other words the assessee has no choice to shift the arrears of a particular year to another year according to his convenience.
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