89 (1) releif

i received arrears of salary for last 3 years. My company allowed relief u/s 89 (1) on part of the arrears in Form 16 by way of submitting 10E. Now i want claim remaining 89 (1) . is it possible? kindly let me know the procedure.

Replies (1)

Yes, it is possible while ur submitting ur incometax return.

For claiming relief u/s89(1) the following steps has to be follow:

Camputation of relief u/s89(1):

1) First u compute incometax including arrears received for the current year(i.e. arrears received year)

2) Next u compute incometax excluding arrears received for the current year

3) Now find excess tax payable due to arrears from the above two steps (i.e. 3 = 1-2)

4) Next u compute income tax for the year to which the arrears related including arrears

5) Next u compute income tax for the year to which the arrears related excluding arrears

6) Now u compute how much tax payable due to arrears now from the above two steps(i.e.6 = 4-5)

7) Now u find difference between 3 & 6 i.e 7 = 3-4

              Now get relief amount as per step 7 but limited to step 3 amount.

              I think u follow the above if u want to get clarity please refer incometax reconer or incometax book with u it gives clear about computation with examples

OM SAI SRI SAI JAI JAI SAI

                 

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