Relief U/s. 89(1)

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Neha Thalla (Querist)

09 June 2010 I've come across a client who is a Salaried individual & has claimed relief U/s. 89(1) for 40% of arrears received(pertaining to A.Y. 2001-02, 2002-03, 2006-07, 2007-08, 2008-09 & 2009-10) during the A.Y. 2009-10. While in the A.Y. 2010-11 he has received remaining 60% of the arrears relating to A.Y. 2001-02, 2002-03, 2006-07, 2007-08, 2008-09 & 2009-10. Now i'm in a fix whether to consider the previous arrears received or not. Can anyone please guide as to how to deal with this issue i.e to add back the previous arrears to the current year or to simply ignore the previous arrears & continue with the regular calculation of Relief U/s. 89(1) for the 60% of arrears. Its a bit urgent.. please help me out!!!

CMA RV Padmakumar.A

CMA RV Padmakumar.A (Expert)

09 June 2010 continue with the regular calculation of Relief U/s. 89(1) for the 60% of arrears in 2010-11 since 60% arrears received only in AY 2010-11...that 40% is already claimed u/s 89 (1) in AY 2009-10

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Neha Thalla

Neha Thalla (Querist)

09 June 2010 Thank you so much..

Deepak Goel

Deepak Goel (Expert)

09 June 2010 Agree with Padmakumar

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Neha Thalla

Neha Thalla (Querist)

12 June 2010 I really Thank Mr. Padmakumar & Mr. Deepak Goel for your ready response. But my issue has come to Point 1 again.. Cause i've done the same calculation in one of Relief U/s. 89(1) Calculators available on the internet & to my surprise they have deducted the relief received in the previous year from the current year's relief. So the entire relief claimed by my client in the current year would be just Rs 21/-. I'm thoroughly confused.. What to do now??

CMA RV Padmakumar.A

CMA RV Padmakumar.A (Expert)

12 June 2010 after calculating 89(1)in usual manner,if no benefit to assessee then dont claim relief...

do in the usual manner which is stated in the income tax Act and corresponding rule..
refer Act and Rule and follow that...

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