Relief under Section 89

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Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2011 hello,
i have a query regarding arrears to be included, Is total amount of arrears receivable or only that much part of arrears received as installment, to be consider while calculating relief under section 89.

For example: Total arrears is Rs 184,000 for jan 06 to march 09, to be received in five equal installment. but only first two installment of Rs 36,800 each (i.e. total RS 73,600) recived during the P.Y 20010-11 i.e A.Y 2011-12.
What would be the amount of arrears to be consider for calculation of section 89 relief ? whether Rs 184000 or RS 73600 ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 February 2011 Arrears to be taken on Receipt Basis.
In your case take 73600/-

Guest

Guest (Expert)

09 February 2011 Actual receipt during the year i.e. Rs. 73,600/-

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Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2011 Thanks a lot to both the expert.

I would like to ask one more question, suppose this RS 73,600 is bifurcated among three previous years i.e.
PY 2005-06 RS 12,600
PY 2006-07 RS 51,200 and
PY 2007-08 RS 9,800 (ie balance amount)

Thus whether We have to consider this part amount for PY 2007-08 RS 9,800 which is actually received amount while calculating Relief in Form 10E or full amount which is receivable for that P.Y ?

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2011 Please guide

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 February 2011 "Thus whether We have to consider this part amount for PY 2007-089,800 which is actually received amount while calculating Relief in Form 10E or full amount which is receivable for that P.Y ?"

From the details given things are messing up
so please give details in the following format...

Income Returned for AY 2006-07 (Tax paid Rs. ...)
AY 2007-08 (Tax paid Rs. ...)
AY 2008-09 (Tax paid Rs. ...)

Date wise details of Receipts of arrears.

Income corresponding to the AY in which arrears are being received.