Relief under section 89 (1) of IT Act

This query is : Resolved

CPA Partha Sengupta (Querist)
Follow

08 January 2010 Hi all,

Suppose, a Government servant wants to claim relief under section 89(1) for the AY 2005-06 to AY 2009-10 for arrear salary received in AY 2010-11.

He was earlier paid income tax and submitted the IT return based on Form 16 issued by the employers for each of these years.

After the allocation arrear pertaining to these years AY 2005-06 to AY 2009-10, it is noticed that tax becomes payable for each of years during AY 2005-06 to AY 2009-10.

Now question arises whether:

Tax payable for the years AY 2005-06 to AY 2009-10 by the employee can be recovered from the salary income during January to March 2010 by the employer.

OR
The employee should pay the tax out of his own and submit the revised return for each of years during AY 2005-06 to AY 2009-10 and on receipt of revised return from the employee along with the challan copy regarding tax paid by the employee for AY 2005-06 to AY 2009-10, the employer may give the effect in form 16 for the AY 2010-11.

Please also clarify whether form 10E as required under section 21AA of the IT Act, is required to be submitted by the employee to the employer before giving the effect of relief in form 16 for the AY 2010-11.

Thanks!

CPA Partha Sengupta

CPA Partha Sengupta (Querist)
Follow

11 January 2010 Reply is awaited.