10 June 2016
I have doubt, regarding section 89 ,Arrears claim tax relief: My brother is in bank and he has received 92679 amount as part of arrears in FY 2015-16 but it was pending for last 2 year that means FY2013-14 and FY 2014-15. 1. Do i need to equally divide the arrears for each year .equally divide for last 2 year and current year ? or Do i need to divide arrears as per previous year income. 2. after dividing the arrears how would i calculate the tax ,Should i consider the exemptions of previous years like section 80C while calculating tax for last 2 year (with or without arrears as per the instructions ) ? 3. if i am eligible to avail the tax in section 89 then where i need to fill the same in ITR-1. However i know that i need to fill form 10-E 4. I can see that we can fill the form 10-E online should i need to submit physical copy also ?
10 June 2016
sec 89(i) 01. Bifurcate the arrears as per the years. Then add the arrears to the respective years total income, find out the tax liability. Compare it with the tax liability if the entire arrears are taxed in the current year. The one which is beneficial to you can be resorted to. 02 10 E needs to be filed. If filed online, then no need to file physically
13 June 2016
Hi Amol, I have one doubt regarding bifurcation of arrears, suppose total amount is 90000/- and arrears was pending since 2 FY i,.e. 2013-14,2014-15 and including 2015-16(till november 2015 only) then how would do have to divide the arrears .. should i divide 30000 for each FY or divide 90K into two part only.
i am little confused here as little part of arrears is for current year also from April 2015 to Nov 2015. so this amount should not be goes into previous yer amount. Please explain.
13 June 2016
Ok ..but in my brother form 16 given by his employer (andhra bank ) they just mentioned the lum sum amount 90000 . Then i was thinking to divide it by number of months(32 --->24 for last 2 FY AND 8 FOR CURRENT YEAR) then per month amount would be 2812..so can we do this calculation .in my brother case ? So 33744 /- amount would be for each FY (2013-14 & 2014-15) Pl ease suggest.
13 June 2016
ok i will try but i don't think so they will revert ,that' why i was thinking to do calculation myself as per described in my previous comment..
13 June 2016
every employer is DUTY bound to give the break up. Dont try to think on your own fear. It is the irth right of every employee to get the break up of the arrears. f anyone is denying to give, you can make a complaint to Bank Ombudsman
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