Relife


This query is : Resolved 

27 January 2016 please suggest how to calculate relief u/s 89(1) details with examples

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

Arpit Shah (Expert)
27 January 2016 https://www.simpletaxindia.net/2015/08/income-tax-relief-us-891-calculator-fy-2015-16.html

Arpit Shah (Expert)
27 January 2016 https://www.simpletaxindia.net/2015/08/income-tax-relief-us-891-calculator-fy-2015-16.html

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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