Relief u/s 89

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This query is : Resolved

Dhiraj Swain (Querist)

22 February 2011 Arrears of salary was received during FY 2009-10 & relief u/s 89 was also claimed that year. Again arrear was received in FY 2010-11 in respect of the same years for which arrear was received in FY 2009-10. My doubt is whether the arrear received in FY 2010-11 is only to be considered in computation of relief u/s 89 for 2010-11 or all the arrears received in both the FYs are to be cosidered?

If arrears received in FY 2009-10 is not cosidered, probably the tax computation for the years in respect of which arrear was received in FY 2009-10(for computation of relief), may not be correct as we will not be considering the arrears received in FY 2009-10 for those years, which has become the part of the taxable income for those years.

If arrears received in FY 2009-10 is considered, will there be double tax impact as the same arrears will be included in the taxable income of those years in respect of which the arrear was received and it is already included in the taxable income of FY 2009-10 as it was received in that FY.