Aaskaran Dhingra (Proprietor) (45 Points)
31 May 2016
Vinay somani (CA, CS)
(Assistant Manager-Accounts)
(549 Points)
Replied 31 May 2016
Basically, the relief under Section 89(1) is arithmetical. It involves ascertaining the two amounts of tax,
1) the first is the amount of tax applicable to the total income, including the extra amount in the year of receipt.
2) The second is calculating the amount of tax by adding the arrears to the total income of the years to which they relate.
The difference between the two amounts is the deduction allowed in the return of year of receipt.
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