Taxation relief under section 89, 90, 91

Step 1 Calculate tax payable on the total income, including additional salary – in the year it is received

Step 2 Calculate tax payable on the total income, excluding additional salary – in the year it is received

Step 3 Calculate difference between Step 1 and Step 2

Step 4 Calculate tax payable on the total income of the year to which the arrears relate, excluding arrears

Step 5 Calculate tax payable on the total income of the year to which the arrears relate, including arrears

Step 6 Calculate difference between Step 4 and Step 5

Step 7 Excess of amount at Step 3 over Step 6 is the tax relief that shall be allowed.

Note that if amount at Step 6 is more than amount at Step 3 no relief shall be allowed.

Filing Form 10E is mandatory to claim Relief under section 89(1)

Dear Sir,

Please tell me one Example