Relief u/s 89

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LAKSHMI P R (Querist)
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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..

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.