Tax calculation on arrears

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2009 In our organisation, an employee was not paid pension for 10 years. A decision has been taken to pay the pension from this year along with the arrears of the last 9 years. Query is : whether he should be granted relief under section 89(1)of IT Act if he submits form 10E to the employer. It may also be clarified whether it is necessary for him or employer to obtain permission from the Assessing Officer, Income Tax Authorities as mentioned in Section 89 before granting him the relief under Section 89.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 December 2009 Q 1. whether he should be granted relief under section 89(1)of IT Act if he submits form 10E to the employer?
ANS > Yes .
Q 2 Permission from the Assessing Officer,

Permission is not required . Employer can deduct TDS on Pension at lesser rate if he receives Form 10E from the employee.

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