Relief u/s 89(1) for performance related pay .
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 October 2014
I am working in a PSU owned by Govt.of India . I have received performance related pay for the year 2013-14 in subsequent year i.e in 14-15. I am claiming relief u/s 89( 1) as my contention is that it is nothing but profit in lieu of salary and it accrued to me in the year 2013-14 itself. In 2013-14 my tax rate is 20% whereas in 14-15 it is 30%.
The company contention is that Performance related pay is in the nature of Bonus and it is taxable in the year of receipt i.e 2014-15 even though relating to earlier year 13-14. Hence no relief will be available u/s 89(1).
Please give me any specific case law and relevant section which can be referred in this case .
The company contention is that Performance related pay is in the nature of Bonus and it is taxable in the year of receipt i.e 2014-15 even though relating to earlier year 13-14. Hence no relief will be available u/s 89(1).
Please give me any specific case law and relevant section which can be referred in this case .
CA MANOJ GUPTA
(Expert)
17 October 2014
IT IS IN NATURE OF PROFITS IN LIEU OF SALARY U R ELIGIBLE FOR RELIEF
CA MANOJ GUPTA
JODHPUR
09828510543
CA MANOJ GUPTA
JODHPUR
09828510543
CA R SEETHARAMAN
(Expert)
17 October 2014
The contention of the company is right it is not an arrear of salary it is only a bonus which is determined in the next year based on the performance of the company.
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