Divya Karthik (S) (459 Points)
01 June 2010
An employee has recieved arrear of salary in May 2010 for the years 2007,2008,2009(Rs.1 lac each year).
Can he divide this arrears of salary to the respective years as he won't be paying tax,if divided.Or will it be taxable in the Ay 2011-12, the whole 3 lacs & claim relief u/s 89?
How will the calculation be?
Can any 1 pls explain in numerical terms ?
Urgent...
praveen
(Chartered Accountant)
(6971 Points)
Replied 01 June 2010
You cannot divide arrears of salary.
All you can do is take the income this year and claim releif u/s 89
kantijain
(Chartered Accountant in Practice)
(385 Points)
Replied 01 June 2010
Dear Mohan,
I am attaching the 89(1) relif calcualtor (receivced from simple tax india website), i hope same will be useful to u.
Regards
Kanti Jain
CAclubindia
