Relief u/s 89

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2016 In the calculation of relief 89 for determining previous years excess tax , can we exclude the tax on perquisites which was borne by employer? For e.g. If total tax is 100 in which 20 ₹ is bear by employer so we take only 80 nd now with arrears calculation tax excluding perquisites on income and take difference amount take as excess tax in previous year..
Can we do it or not?

Thanks

Arpit Shah

Arpit Shah (Expert)
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25 January 2016 https://taxguru.in/income-tax/income-tax-relief-section-891-calculator-fy-201314.html

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Arpit Shah

Arpit Shah (Expert)
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25 January 2016 https://webcache.googleusercontent.com/search?q=cache:9NbFU6VjlvUJ:taxguru.in/wp-content/uploads/2012/01/Arrears-Relief-Calculator-from-FY-2000-2012-Us-891.xls+&cd=4&hl=en&ct=clnk&gl=in

Arpit Shah

Arpit Shah (Expert)
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25 January 2016 https://www.simpletaxindia.net/2014/07/891-relief-calculator-for-arrears.html#axzz3yE4YN0fY

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 October 2021 1) Calculate tax payable on the total income, including additional salary, arrears or compensations, in the year it is received.
2) Calculate tax payable on the total income, excluding any additional salary, in the year it is received.
3) Subtract the calculation derived from Step 2 from the total salary calculation from Step 1.
4) Calculate tax payable on the total income, excluding arrears, for the year to which the arrears relate.
5) Calculate tax payable on the total income, including arrears, for the year to which the arrears relate.
6) Now calculate the difference between Step 4 and Step 5.
7) Excess of amount at Step 3 over Step 6 is the tax relief that will be allowed to you, while in case the amount in Step 6 is more than the amount in Step 3 no relief will be allowed.

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