Relief u/s 89(1)

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Ramaa (Querist)
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26 December 2008 Hello,

As you all know, Central Govt. employees received arrears for the years 2005-06 till August, 2008 as a result of 6th CPC implementation. I request you to kindly clarify on the following points for calculating relief u/s 89(1)

i) Will there be relief even to Gr.A officers who have already been paying maximum tax?

ii) The taxable income figure will be before edu.cess or after for the past years?

iii) If you can show me an illustration for calculating relief u/s 89(1) for the above-mentioned period, I shall be very grateful.

iii) Transport allowance, over and above Rs.800/- is taxable. is DA on TA is taxable? If so, is DA on TA taxable for TA less than Rs.800/- viz., the exempted amount?

iv) If a husband/wife is in joint possession of a house, then against loss of interest on house property, is it necessary that this amount should be equally shared or the ratio can differ? Can I take 70% amount for husband and 30% for wife and simultaneously, in the deductions on principal, take 50% for husband and 50% for wife?

Can I expect a reply soon?

Thanks a bunch.

Regards

Ramaa

Taxguy

Taxguy (Expert)
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26 December 2008 i) No.
ii) before
iii) it will be available in all VG Mehta ready reference, better check there.
III) only 800/-
iv) You can adjust but within 100