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section 89

mehul kishnani (student) (264 Points)

17 June 2010

hi everyone

my query is can we claim relief u/s 89 on the other person's income in case of clubbing of income for assessee.

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10 Replies

Amir (Learner) (4016 Points)
Replied 17 June 2010

Hi Mehul,

Interesting question......!

Sec 64(1)(ii) provides for the clubbing of salary earned by the spouse of an individual.

Relief u/s 89(1) is available only in respect of salary income. The same is not denied in case of clubbing.

So, I feel it will be available but computation would be tricky. I am not sure how it should be done but I can guess that the same should be based on the income slabs of the spouse in whose hands income is clubbed.

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Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 17 June 2010

Agree with Amir

mehul kishnani (student) (264 Points)
Replied 17 June 2010

ok i want add one thing in it. suppose there is death of spouse in 2007 n from that onwords her income by the way of pension is added in her husabands income then can relief u/s 89 for her income is available to his husband further his husband is also a govt employee n claiming relief for his arrears

CA Shiv (Business Controller) (2987 Points)
Replied 17 June 2010

Mehul,

Definately he can claim relief, as under clubbing provisions it is not restricted.....Explanation provided by Amir is perfect... Your additional questional wont change the matter...

mehul kishnani (student) (264 Points)
Replied 17 June 2010

hi shivang

then whose slab we will consider for the calculation individual or of spouse here indiividual is also getting arrears in his personal capacity

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Amir (Learner) (4016 Points)
Replied 17 June 2010

HI Mehul,

Ur question itself is not correct........

Pension received after the death of an employee is called as "Family Pension" & the same is taxable as the income of the recipient as "Income from Other sources" & it not governed by the clubbing provisions.

Further sec 89(1) itself probides for the relief in case of arrears of Family Pension.

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.]

mehul kishnani (student) (264 Points)
Replied 17 June 2010

thanx alot aamir

SRINIVAS SRIRAJ (Chartered Accountant) (130 Points)
Replied 18 June 2010

Sec.89(1) starts with the following words "Where an assessee is in receipt of a sum". As the assessee has not received the sum of money, Sec.89(1) may not be applicable, in my opinion, in the cases where the income is taxable u/s.64(1)

mehul kishnani (student) (264 Points)
Replied 18 June 2010

my query was for family pension. in that case assessee is in receipt of a sum. further it may be possible that out of last three years he may not in position to get family pension because his spouse was alive . in that how to calculate the relief.

SRINIVAS SRIRAJ (Chartered Accountant) (130 Points)
Replied 18 June 2010

As it is already mentioned earlier by somebody, it applies to family pension as the same is mentioned in Sec89(1) itself..

When the husband is alive, there can not be any family pension. Only after his death the family pension starts accruing and hence, your question does not arise at all.