Please help- regarding tax relief on arrears of salary

Hi friends..............I want help in respect of taxibility of Arrears of salary.

One of my client  has received arrears of salary partly in P.Y.2010-11 & partly in current P.Y. 2011-12 in sept.2011.this salary relates to 4 years i.e. for A.Y. 2006-07 t0 2011-12.  Now, question is How to deduct tax for remaining months of 2011-12 i.e. from oct.2011 to Feb.2012........i.e. whether relief u/s. 89 is to be considered  for calculation of bal. TDS liability or relief is to be calculated at the time of submitting the return & refund, if any to be claimed therafter? also, please guide how to lower the tax burden as the assesee presently deducting Rs.10000 tds & he is required to pay Rs. 96420 as tds for the comming months of F.Y.2011-12 i.e. upto Feb.2012. the investments under 80 c exceeds Rs. 1,00,000 & there is loss from self-occupied property of Rs. 13000 as intrest on loan borrowed for self-occupied house property.........................

please help, its urgent.

Thank u in advance for ur cooperation.

Replies (1)

Yes, in case of Arrears of Salary relief is available u/s 89.

Since salary is taxable on due or recieved (whichever is earlier basis), the salary recieved as arrears are in respect of the previous A. Y. ( 06-07 to 11-12) as provided by you .

The relief u/s 89 shall be claimed as the difference between the tax calculated taking whole arrears as salary for current A. Y. ( in which the arrears are recieved) and the tax calculated on arrears for different A. Y. 's

Please refer to link: https://www.simpletaxindia.net/2010/01/relief-under-891-salary-arrear-advance.html

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