Question Regarding Amendment In Running Staff Allownace

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Hi friends

As we Know that the exemption limit of Running Staff allowance has been increased from Rs.6000 p.m. to Rs. 10000 p.m.

 

or 70% whichever is less. But it also stated in the notification that this amendment will have retrospective effect with effect from 1-september- 2008 .

Can anybody please elaborate me that what does the retrospective mean here?

since a person who had already filed a return for AY 2009-10 had completed all formalities at that time, will such person be eligible for Refund etc. after such amendment was issued for the years for which he has already filed return after 1-9-2008.

Plz Plz Plz Plz reply.

Replies (6)

I think yes they can file a revised return and claim the exemption they are allowed with retrospective effect.

Thanks for your reply.

but one more doubt is that suppose for the FY 2008-09, a person has filed his return in time in AY 2009-10 now as per the provisions of revised return, the revised return can be filed within one year of the completion of the relevant assessment year(AY 2009-10) i.e. in this case,only uptil 31-March-2011, the revised return can be filed.

 

In view of the above, how can a person file his revised return after the completion of one year from the relevant assessment year's completion in the AY 2011-12?

Plz plz plz plz do reply.

it means they are eligible to get additional allowance for back periods also, and hence such addiitional receipts are exempt upto the new ceiling level, for balance they have to avail sec 89(1)

 

Thank u U S Sharma sir,

so as per your opinion should i consider the amount received over the limit of Rs.6000 as arrears of salary and then claim the relief under section 89(1)?

and also plz plz plz tel me that as per opinion of Mr. Parveen above can filing of a Revised Return be an alternative solution to the aforementioned problem or not?

waiting for the reply

and thanking in anticipation.

if the amount was paid in previous years and you have claimed less, then you have to revise your return, but when its not paid in previous years and received in current year with retrospective effect then with such provision, then its absolutely receipt of prior period and to be treated u/s 89(1)

Thank u so much, U S Sharma sir for your valuable guidance.

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