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urgent answer required

richa (back office executive) (39 Points)

17 November 2009

Can a assessing officer disallow 20% of telephone expenses when on the whole amount fbt is also paid by the company?

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6 Replies

swohra (none) (537 Points)
Replied 17 November 2009

Ya assessing officer can disallow depending on the case. In this case you can claim for FBT refund which u have already paid on 20%. Wait for other reply.

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SREEVANI RAO (Articled Assistant) (38 Points)
Replied 17 November 2009

Sir

Please let me know the stepts for computation of relief u/s89 read with rule 21A with an example of an illustration. its urgent......... send the details to my email-id sreeevanisraor @ gmail.com

jaideep malik (artical assistant) (78 Points)
Replied 17 November 2009

relief u/s 89(1) may be calculating as follows :

supose: (MAXIMUM EXEMPTION LIMIT FOR THE ASSESSEE IS 1,50,000)

Salary received in F.Y 08-09: 5,00,000/-

Salary received in F.Y 07-08 2,50,000/-

and you received Rs 1,00,000/- as increasd salary pertaing to F.Y 07-08 which is not taxed in F.Y 07-08

now to compute relief follow the following steps:-

1. Compuete tax for F Y 08-09 on Rs 5,00,000/-

2. Compute tax for F.Y 08-09 on Rs 5,00,000/- and Rs 1,00,000/- i.e on Rs 6,00,000/-

3. Deduct tax as calculated in Step 2 from tax calculated in Step 1

Supose Tax in Step 1 = (15,000+20,000) 35,000

Tax in Step 2 = (15,000+30,000+30,000) 75,000

Step 2- Step 1 = 75,000-350,00 =35,000/-

4 Compute tax for F Y 07-08 on Rs 2,50,000/-

5. Compute tax for F.Y 07-08 on Rs 2,50,000 + Rs 1,00,000/- i.e total 3,50,000

6 Deduct tax as calculated in step 5 from tax calculated in step 4

Supose Tax in Step 4 = (10,000) 10,000

Tax in Step 5 = (15,000+10,000) 25,000

Step 5- Step 4 = 25,000-10,000 =15,000/-

7 Deduct Step 3 form Step 6

i.e 35,000-15,000 =20,000

20,000 /- shall be relief u/s 89(1)

if balance in step 7 show negative ( -ve) amount there is no need to claim relief

(Guest)

Originally posted by :jaideep malik
"	relief u/s 89(1) may be calculating as follows : supose: (MAXIMUM EXEMPTION LIMIT FOR THE ASSESSEE IS 1,50,000) Salary received in F.Y 08-09: 5,00,000/- Salary received in F.Y 07-08 2,50,000/- and you received Rs 1,00,000/- as increasd salary pertaing to F.Y 07-08 which is not taxed in F.Y 07-08 now to compute relief follow the following steps:- 1. Compuete tax for F Y 08-09 on Rs 5,00,000/- 2. Compute tax for F.Y 08-09 on Rs 5,00,000/- and Rs 1,00,000/- i.e on Rs 6,00,000/- 3. Deduct tax as calculated in Step 2 from tax calculated in Step 1 Supose Tax in Step 1 = (15,000+20,000) 35,000 Tax in Step 2 = (15,000+30,000+30,000) 75,000 Step 2- Step 1 = 75,000-350,00 =35,000/- 4 Compute tax for F Y 07-08 on Rs 2,50,000/- 5. Compute tax for F.Y 07-08 on Rs 2,50,000 + Rs 1,00,000/- i.e total 3,50,000 6 Deduct tax as calculated in step 5 from tax calculated in step 4 Supose Tax in Step 4 = (10,000) 10,000 Tax in Step 5 = (15,000+10,000) 25,000 Step 5- Step 4 = 25,000-10,000 =15,000/- 7 Deduct Step 3 form Step 6 i.e 35,000-15,000 =20,000 20,000 /- shall be relief u/s 89(1) if balance in step 7 show negative ( -ve) amount there is no need to claim relief	"