relief under section 89(1)
sstapler
(Querist) 13 March 2010
This query is : Resolved
My gross income is 263248/-
I have got arrear of 19484/-
this year's salary p tax is 1540 and differential ptax for arrear is 240 and differential PF of arrear is 984/-
my total savings under sec 80C is 5714+7500+14236+10100+4800
My previous year's income was 161874 with 9tax of 1320 and savings of 7500 only. Please tell me the tax payable with the relief of section 89(1)
A V Vishal
(Expert) 13 March 2010
You have not stated the relevant years to which the arrears relate to.
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. Since details are unavailable find enclosed a 89 calculator wherein you can calculate the relief inputting the required data.
A V Vishal
(Expert) 13 March 2010
This calculator show two calculation one is on the basis of the receipt of salary and other is on the basis of relevant years and if tax on receipt basis is more than relevant years basis then relief under section 89(1) will be available otherwise nothing is available means no benefit in distributing the arrears in respective years.
How to Use.
You have to fill only yellow column only .after each entry an updating sign will be shown,after disappearance of the sign then only enter next data.
All yellow cell are not mandatory fill only which are required.
Arrears in aggregate can be distributed to all relevant years and we can not distribute partial arrears to few years .Means we(avail 89(1)) do it in full or not to do at all.
This calculator will not work where in any of the previous year there is Long term capital gain in few cases where slabs changes.Against each row ,which contains a yellow cell a note has been described as under.
Note.
Fill M for male and F for female and S for Sr Citizen
Fill Total Income excluding arrears excluding 40 % arrears received in 2008-09 and 60 % in 2009-10 Financial years but including all other income and after all the deduction like section 80C,80CC,80D,80G ...........80U etc.
Fill 60% arrears received in 2009-10 ,year wise break up under respective year.
Fill 40 % arrears received in 2008-09,year wise break up under respective year.
Fill "1" (one in figure) if relief u/s 89(1) if it is claimed in year 2008-09 on 40 % of arrears.
Fill relief under section 89(1) on 40% arrears , if relief u/s 89(1) if it is claimed in year 2008-09 on 40 % of arrears.
In this column calculation of 89(1) relief on 40 % will be shown on the basis of data entered by you ,if it would have been claimed by you in previous year.if your interested now to claim the same then you can revise your return .
Nothing to fill here ,result is out ,if total A >Total B then relief under section 89(1) will be shown ,otherwise 0 will be shown .Further Form 10E with relevant annexure will also be filled automatically with table-1
Kumar Thadhani
(Expert) 14 March 2010
Expert Mr. Vishal has rightly guided you.
