Is there any negetive effect of relief u/s 89 for salaried

This query is : Resolved

LOVISH DHINGRA (Querist)
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11 March 2013 Sir,
Please make me know If person gets arrears after his retirement. Is Arrears received by him will fall under Tax as per calculation of relief U/s 89 if he gets -ve effect from this mean he is liable to pay more tax as per calculation of Relief U/s 89 retrospective basis.
Expl:

Arrear recieved Rs.807000/- in F.Y. 2012-13 Assessee have Income of Rs.180000 this year.
Arrear Recieved for the
A.year 2007-08 Rs.280134/-
A.year 2008-09 Rs.308220/-
A.Year 2009-10 RS.219154/-

that time person was in 30% slab rate.
Now he have income of Rs.180000/- Only.

As per reciept basis Tax Will be Rs.278179/-
As per Accrual basis Tax will be Rs.378877/-
Will assessee be liable to pay tax for the retrospective period also or he can calculate tax by adding arrears in this year income.
Pls suggest.. Can we ignor the relief sec. 89 and pay tax as per reciept basis ????

Pls suggest as soon as possible ??
Lovish Dhingra
9888444873

CA Neha Chauhan

CA Neha Chauhan (Expert)
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11 March 2013 For the case explained by you...no relief u/s 89 can be claimed and have to pay tax on receipt basis only...in your case you have to pay tax Rs.278179/- and Advance tax Provisions also applicable in your case.

Regards,
Neha Chauhan

LOVISH DHINGRA

LOVISH DHINGRA (Querist)
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12 March 2013 Mam,
Thanx for your precious reply & for your time.. I just wanna clear one more thing i.e. is there any section which can attract my case in future to pay tax on retrospective basis if i will pay file return on receipt basis & will not have relief U/s 89.

CA Neha Chauhan

CA Neha Chauhan (Expert)
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12 March 2013 Section 89 itself said that you can not take the benefits of rebate if tax on receipt basis is lower than tax on accrual basis and you have to pay tax as per receipt basis only....once you had paid the tax and you have a proof for the same..

LOVISH DHINGRA

LOVISH DHINGRA (Querist)
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12 March 2013 Ohk Thank u sooo much... & Thanx for time ...

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