DOUBT REGARDING CALCULATION OF 89 RELIEF.
DETAILS RELATING TO THE CURRENT YEAR 2013-14
Salary for the Current Year is Rs.358000, other than current year salary, arrear salary were received
for Rs.156000 in the current year 2013-14 realted to the PY 2012-13.
DETAILS RELATING TO THE PREVIOUS YEAR 2012-13
Only Salary Arrears for Rs. 339000 were received in the PY 2012-13 which were corresponding to
the PY 2005-06, 2006-07, 2007-08.
No Salary was due and received for the PY 2012-13, only the above arrears were received.
Rs.100000 was claimed as 80C deduction in the PY 2012-13 and relief u/s 89 were claimed for the PY 2012-13
and tax was NIL for the PY 2012-13.
THE ISSUE RELATED TO THE CY 2013-14 IN CALCULATING RELIEF U/S 89.
While calculating relief u/s 89 for the CY 2013-14, what will be considered as the total income for the PY 2012-13?,
a) Rs 239000 (ie after deducting the 80C deduction) or
b) Total income is considered as NIL for the PY 2012-13.
please advice me by giving any solution...
CAclubindia
