Relief u/s 89 (1)

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Guest

Guest (Querist)

19 March 2012 Dear Sir,

Company x has decided to increase salary from retrospective effect in April 2011 and paid arrears for last two years in April 2011 it self.

Now my question is:-
1. can employee claim relief U/s 89 (1)?
2. Company has need to calculate and give relief u/s 89 (1) while deducting TDS?
3. if company has not consider relief and deduct tax than employee can claim refund by claiming relief u/s 89(1)?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

19 March 2012 1) yes, the employee can claim relief U/S89(1)

2) The employee has to submit 89(1) relief computation while deducting TDS with submission of Form 10E. However it is not compulsory acceptance by the employer it is the duty of the employee to submit form 10E and get the relief of section 89(1) at the time of filling of Income tax return.

3)Event though employer not accepted the relief u/s 89(1) employee can file his income tax return with submission of form 10E certificate and can get relief u/s 89(1) and can claim refund. One more thing if the employer accepted the 89(1) relief at the time of deducting of TDS employee must submit his return to get the 89(1) relief from the IT department with submission of from 10E certificate.
In one word for getting 89(1) relief employee must submit his return with form 10E certificate in any case.
OM SAI SRI SAI JAI JAI SAI

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