Section 89(1)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2011 PLEASE SEND ME DETAILED EXPLANATION REGARDING THE COMPUTATION OF RELIEF UNDER THIS SECTION FOR DIFFERENT SOURCES OF INCOME.

CA SUMiT PATWARi

CA SUMiT PATWARi (Expert)
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18 October 2011 The concept is to applied when we receive some arrear salary in the current year:-

Relief is to be given u/s 89(1) when we are paying more tax on arrears received in current year if calculated under current years income than if it was calculated in that year in which the income was actually received.

So to the extent of extra tax payable a relief is given u/s 89(1)

Check this link
http://www.simpletaxindia.org/2011/04/891-relief-calculator-for-arrears.html