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Rectification about relief u/s 89(1)

23 December 2014

Hello,

I have filed my one client return having salary income from ONGC for A.Y. 2014-15 and Claimed Relief U/s 89(1) but while processing return by cpc relief Amount was not considered hence demand generated, there after i had also filed rectification request for same but re processed again without considering Relif u/s 89(1) amount.please guide me to solve the problem.Thanks in Advance.

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32 Replies

CA Prakash (Chartered Accountant) (475 Points)
Replied 23 December 2014

File rectification application by Selecting User Type as “No Further Data Correction is required, Reprocess the case” and then select “Tax / Interest Mismatch Flag” then submit the Request and ensure there are no other issues in the latest order which was Processed by CPC. For more information on CPC communication and rectification read below articles

Different type of communication letters sent by Central Processing Center (CPC)

FAQ- CPC Communication on processing of Income Tax Return and filing of Rectification application.

CA RaviKumar (Chartered Accountant) (64 Points)
Replied 07 February 2015

Hi, I had the same problem... I have filed rectification but yet again they raised demand not considering Relief U/s89. What i have to do now. Demand is more than 2lakhs in each case...Pls advice quickly...can i revise it now since i have filed within due date.

Thanking you

Roshan Thomas (C.E.O ) (356 Points)
Replied 07 February 2015

Have you uploaded Form 10 E in the income tax website along with your income tax return. When relief is claimed you have to submit Form 10E, this is available under "E-File" > Prepare and Submit Online Form (Other than ITR)" section of incometaxindiaefiling.gov.in webiste.

Kindly upload and then apply again for rectification

CA RaviKumar (Chartered Accountant) (64 Points)
Replied 07 February 2015

Hi,

I dint upload Form 10E while uploading return.. Can i Upload Now Form 10E n apply for rectification. Actually When i applied for rectification second time it got rejected. how many rectifications can be filed...

Roshan Thomas (C.E.O ) (356 Points)
Replied 07 February 2015

I believe legally speaking rectification order can only be appealed against, but the online Income Tax India website allows rectification to be done more than once.

Yes, Form 10E can be uploaded now , you will have to upload the scanned image.

Narendrakumar (ASSISTANT) (23 Points)
Replied 28 April 2015

Dear Experts,

I have also filed (ONGC employees,PRBS ) such kind of return with claim relief u/s 89(1) with 10E, CPC have processed all the returns & relief considered as '0' in Intimation order u/s 143(1), I have also filed rectification (twice) there after CPC has transfered rectification right to AST. We have met DCIT, Mehsana Gujarat, She intentionally confused about the claim, She promised us that If some other Income tax office will release such refund then She will process the refund cases for ONGC Employees. We also given an application u/s 154 to local IT office but I don't think that IT will process the same positively, utimatelly We have to gone through appeal then ITAT.

Narendrakumar (ASSISTANT) (23 Points)
Replied 28 April 2015

Dear Experts

CPC is processing the return with relief u/s 89(1) if claim amount is less the Rs.100000/-, if claim amount is morethen Rs.100000/- (i.e Rs.100001/-) then it is being '0' as relief in order u/s 143(1). CPC has Filtered the amount with Rs.99999/- in system. If claim less the 1lac then refund generated with out any verification of claim., One consultant has filed return without claim us 89(1). He has filed the return with less salary income (near about 6 Lacs) , all the return have processed successfully & refund beyond Rs.200000/- have been paid. CPC is not verifying 26AS with return.

SHASHANK KUMAR (w) (70 Points)
Replied 28 July 2015

Can any one guide me relief u/s 89. Whther the relief is combined of Annexure I (Salary in arrear) & II (Gratuity) or any one is taken while claiming.? Please help me out

P. Bhaiswar (PRIVATE) (54 Points)
Replied 10 November 2015

I have a doubt for which amount of salary should I use in the first column in Annexure I that says "Total Income (excluding salary received in arrears or advance)

sir which amount - Gross Amount before we minus T.A. or Professional Tax

or - Excluding the amount of 80C from the Gross.

satyendra (Asstt. Professor) (23 Points)
Replied 19 November 2015

Originally posted by : Roshan Thomas
	I believe legally speaking rectification order can only be appealed against, but the online Income Tax India website allows rectification to be done more than once. Yes, Form 10E can be uploaded now , you will have to upload the scanned image.

Dear Experts

Thank you very much for valuable information. I have the same problem for AY 2015-16. At the time of ITR filing I had claimed relief u/s 89(1) against the arrears I got for previous years in liew of pending increment in my salary. The same was also mentioned in my Form 16. I had not sent or uploaded Form 10E till now. Now I recieved e-mails and hard copies from CPC Bangalore of intimation u/s 143(1) and thereafter demand status stating zero value of relief u/s 89 and asking amount with interest. Now, I came to know through you people that I have fill rectification and sent Form 10E. Here I want to know that 1. wheather I have to fill rectification first and than Form 10E or both together at the same time or first Form 10E than rectification? 2. What is the procedure of getting Form 10E prepared and uploading it into the website? and 3. Whether I have to send that Form 10E to CPC Bagalore in hard copy? if yes, what other documents should I send? Please reply

satyendra (Asstt. Professor) (23 Points)
Replied 19 November 2015

Dear Experts Thank you very much for valuable information. I have the same problem for AY 2015-16. At the time of ITR filing I had claimed relief u/s 89(1) against the arrears I got for previous years in liew of pending increment in my salary. The same was also mentioned in my Form 16. I had not sent or uploaded Form 10E till now. Now I recieved e-mails and hard copies from CPC Bangalore of intimation u/s 143(1) and thereafter demand status stating zero value of relief u/s 89 and asking amount with interest. Now, I came to know through you people that I have fill rectification and sent Form 10E. Here I want to know that 1. wheather I have to fill rectification first and than Form 10E or both together at the same time or first Form 10E than rectification? 2. What is the procedure of getting Form 10E prepared and uploading it into the website? and 3. Whether I have to send that Form 10E to CPC Bagalore in hard copy? if yes, what other documents should I send? Please reply

S. Shiroor (Others) (1207 Points)
Replied 19 November 2015

1) upload form 10E

2) Then in rectificationn choose - reprocess the case.

SAMRAT DEY (I.T.P.) (32 Points)
Replied 28 November 2015

Before upload rectificatin, go to login the client, click to e-filing, than select online e-filing(other than ITR), select Form-10E of the respective Aaatt.Year, fill the form carefully as per your claim u/s 89(1), save the form and upload in the same portal. After successful upload, no rectify electronically by using no further data to be required. CPC will accept the claim. Note to remember that first upload Form-10E, than the ITR or Rectification.

1 Like

Tony John (Chartered Accountant) (6085 Points)
Replied 30 November 2015

If you have not filed Form No. 10E along with your original return claiming releif u/s 89, you may have to submit a rectification return followed by Form 10E (as was adviced to me by the Income Tax Department, when I encountered a similiar situation.)

You can do so by availng the facility provided in the Department's website.