relief under section 89(1) under income tax act in india

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sandeep kumar thakur (Querist)
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26 March 2009 i wish to ask how many previous years r allowed for calclulating 89/1 tax relief. is there any restrictions? How much % of total arrear can be segregated in previous years.is that 40%? What is the procedure under this scection? seeking ur advice.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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26 March 2009 No restriction of years. no such %age specified. procedure is as follow:

Step-1 Calculate tax on total income including additional income in the previous year in which it is received.

Step-2 Calculate tax on total income excluding additional income in the previous year in which it is received.

Step-3 Find out difference between Step-1 minus Step-2

Step-4 Calculate tax on total income including additional income in the previous year in which it pertains to.

Step-5 Calculate tax on total income excluding additional income in the previous year in which it pertains to.

Step-6 Find out difference between Step-4 minus Step-5

Difference between Step-4 and Step-6 will be the relief provided on tax payable by assessee.