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Relief u/s 89

priya (article) (154 Points)

24 July 2012

IS RELIEF U/S 89 IS AVAILABLE WHEN INTEREST RECEIVED ON COMPENSATION RECEIVED FROM INSURANCE COMPANY FOR LAST 3 YEARS??????

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madhuribajaj (Assistant Manager Finance & reporting) (29 Points)
Replied 24 July 2012

Section 89 is applicable only in respect of salary.... An extract of the section is as follows

Relief when salary, etc., is paid in arrears or in advance.

89. Where an assessee is in receipt of a sum in the nature of salary, being paid in arrears or in advance or is in receipt, in any one financial year, of salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, or is in receipt of a sum in the nature of family pension as defined in the Explanation to clause (iia) of section 57, being paid in arrears, due to which his total income is assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer shall, on an application made to him in this behalf, grant such relief as may be prescribed