06 February 2016
under relief u/s 89 Step 1 Calculate tax payable on the total income, including additional salary – in the year it is received Ste 2 Calculate tax payable on the total income, excluding additional salary – in the year it is received 3 Calculate difference between Step 1 and Step 2 4 Calculate tax payable on the total income of the year to which the arrears relate, excluding arrears 5 Calculate tax payable on the total income of the year to which the arrears relate, including arrears 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.
CAclubindia
