Relief u/s 89 for advance salary

Hi

 

You need to calculate first as per exisiting Tax rate, then recalculate actual tax when new tax rate declared. Diff should be payable/refundable

 

Thanks//VaibhavJ

@ joseph... relief is not available for advance salary.

Originally posted by : Tribhuvan Aditya Singh
	@ joseph... relief is not available for advance salary.

can you eloberate further why it is not available?

the object of relief of sec 89 is to make up for extra tax liab. that a person has to bear due to money received today and taxable at current slab rate, though the money if received in years it belongs to would have been taxable at slab rate of that year... thus any advance salary received does not belong to previous years and so the object of sec 89 is not fulfilled and thus it can be claimed for advance salary.

Originally posted by : Tribhuvan Aditya Singh
	the object of relief of sec 89 is to make up for extra tax liab. that a person has to bear due to money received today and taxable at current slab rate, though the money if received in years it belongs to would have been taxable at slab rate of that year... thus any advance salary received does not belong to previous years and so the object of sec 89 is not fulfilled and thus it can be claimed for advance salary.

You need to study further on this..Rule 21A(1) enumerates the following five different situations wherein the assessees will be entitled to relief, of that first one is : salary being received in arrears or advance;

 

Rerer: https://law.incometaxindia.gov.in/Directtaxlaws/act2005/sec_089.htm

 

Thanks!!

okk... i read the rule as well as sec 89 and also few other links.. i admit that i didnt know that it could be calculated for advance salary also... but after going through all links and websites that i visited, i was unable to find anything about calculation of relief on advance salary.. though every link mentioned that relief is available on advance salary but none showed how to calculate it....

now here is my interpretation of rule 21.... i wont say that it is correct, but this what i have interpreted... relief of 89 in case of advance salary is not available in the year of receipt but in the year it actually belongs to... you will be reqd to pay tax today on (current salary + advance salary) as per current slab and in future years, you will avail benefit of relief for extra taxes paid today.

Originally posted by : Tribhuvan Aditya Singh
	now here is my interpretation of rule 21.... i wont say that it is correct, but this what i have interpreted... relief of 89 in case of advance salary is not available in the year of receipt but in the year it actually belongs to... you will be reqd to pay tax today on (current salary + advance salary) as per current slab and in future years, you will avail benefit of relief for extra taxes paid today.

Thats what i meant in my first post dear !

Thanks//VaibhavJ