Relief under sec 89

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This discussion clarifies how to claim relief under Section 89 of the Income Tax Act for arrears received in the current financial year, even if they relate to previous years. It explains that both salary arrears and certain other arrears like DA and HRA should be considered when calculating the relief. The process involves computing tax for the years the arrears were originally due and filing Form 10E online. It also addresses a specific scenario where part of the arrears was transferred to a PF account, advising to include the full arrears amount for relief calculation and claim deductions separately.

shinu

shinu (Querist)
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23 February 2020 Sir,
Need to know whether DA and HRA arrears recieved during the current year against previous years should also be included in salary arrears recieved during the current year to compute relief 89 or to include only salary arrears.

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shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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23 February 2020 Take all income arrears-Compute the tax for all the years as all the arrears are received in those years itself. You have to file Form 10 E online for claiming Relief U/s 89.

shinu

shinu (Querist)
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23 February 2020 Sir,
Suppose 1 lakh was recieved as arrears and of which 20000 was only recieved in cash. Rest 80000 was transferred to pf account.. Without receiving the same.. So while computing relief 1 lakh or 20000 should be taken as arrears