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Relief u/s 89

Manpreet Kaur (Student Others) (396 Points)

14 September 2015

when we get the relief u/s 89(1)???

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S. Shiroor (Others) (1207 Points)
Replied 15 September 2015

If somebody receives salary more than 12 months. or a payment of profit in lieu of salary under section 17(3), his income is assessed at a rate higher than that at which it would otherwise have been assessed. Any Govt or bank employee may get arrears of previous years. So relief has to be calc u/s 89.

The Assessing Officer shall, grant such relief as prescribed. The procedure for computing the relief is given in rule 21A.

This relief is called relief u/s 89(1).

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Miss Rinkal (Student) (1304 Points)
Replied 15 September 2015

Where an assessee is in receipt of a sum in the nature of salary, being paid in arrears or in advance or is in receipt, in any one financial year, of salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, or is in receipt of a sum in the nature of family pension as defined in the Explanation to clause (iia) of section 57, being paid in arrears, due to which his total income is assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer shall, on an application made to him in this behalf, grant such relief as may be prescribed