Deductions in Relief u/s 89
This query is : Resolved
08 March 2025
Hi,
I am seeking clarification regarding the computation of Section 89(1) relief for an individual who has received salary arrears amounting to ₹12,00,000 in FY 2024-25. The arrears pertain to the financial years 2019-20, 2020-21, and 2021-22, during which the individual did not file income tax returns. Salary received in the respective PY's are as follows 2019-20: ₹163,000 , 2020-21 - nil and 2021-22: ₹450000. Also he was having ₹1,50,000 deductions for all those years for which proofs are readily available.
1. Will it be wrong to consider those unclaimed deductions including standard deductions while arriving his tax on total income including arrears in the course of relief calculation?
2. He was having income less than taxable limits for the first 2 years ie. 19-20 and 20-21. But for year 21-22 his income exceeds 2,50,000. Whether non-filing of return attracts rejection of his relief claim?
3. Also in 10E filing , the form demands to fill the total income, should we show net income after deductions there?
4. Should i file belated return for Fy 21-22. Since ITR-U does not permit deductions and moreover, I have come across interpretations suggesting that deductions not claimed in an ITR may not be considered for relief computation , would it be advisable to avoid filing ITR-U for FY 2021-22 and directly proceed with Form 10E for relief under Section 89(1)?
Can someone help me out? Thanks in advance
I am seeking clarification regarding the computation of Section 89(1) relief for an individual who has received salary arrears amounting to ₹12,00,000 in FY 2024-25. The arrears pertain to the financial years 2019-20, 2020-21, and 2021-22, during which the individual did not file income tax returns. Salary received in the respective PY's are as follows 2019-20: ₹163,000 , 2020-21 - nil and 2021-22: ₹450000. Also he was having ₹1,50,000 deductions for all those years for which proofs are readily available.
1. Will it be wrong to consider those unclaimed deductions including standard deductions while arriving his tax on total income including arrears in the course of relief calculation?
2. He was having income less than taxable limits for the first 2 years ie. 19-20 and 20-21. But for year 21-22 his income exceeds 2,50,000. Whether non-filing of return attracts rejection of his relief claim?
3. Also in 10E filing , the form demands to fill the total income, should we show net income after deductions there?
4. Should i file belated return for Fy 21-22. Since ITR-U does not permit deductions and moreover, I have come across interpretations suggesting that deductions not claimed in an ITR may not be considered for relief computation , would it be advisable to avoid filing ITR-U for FY 2021-22 and directly proceed with Form 10E for relief under Section 89(1)?
Can someone help me out? Thanks in advance
10 March 2025
1. No.
2. Yes.
3. Correct.
1. Not possible. Yes,
2. Yes.
3. Correct.
1. Not possible. Yes,
14 March 2025
Sir, sorry to bother you, regarding 4th query it is advisable
Not to file the updated return (ITR-U) because you cannot claim deductions in it.
Instead, manually calculate the tax liability for FY 2021-22, including all eligible deductions, and use that figure while filing Form 10E.
Since, after deductions, your total income in FY 2021-22 is less than ₹2.5 lakh, there is no tax liability for that year.
Also AIS and TIS for the year shows nothing
Not to file the updated return (ITR-U) because you cannot claim deductions in it.
Instead, manually calculate the tax liability for FY 2021-22, including all eligible deductions, and use that figure while filing Form 10E.
Since, after deductions, your total income in FY 2021-22 is less than ₹2.5 lakh, there is no tax liability for that year.
Also AIS and TIS for the year shows nothing
21 March 2025
You cannot file form 10E now, so deductions will not be allowed.
04 October 2025
Good luck...
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