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Relief u/s 89 for arrears of salary.

04 August 2020

assessee received salary of ₹180000 & ₹195000 for FY 2017-18 & 2018-19 respectively. But assessee has not filed ITR for both FY. In FY 2019-20 assessee has received arrears of ₹140000 & ₹240000 for FY 2017-18 & 2018-19 respectively.
Now my question is whether it is necessary to file ITR of FY 2017-18 & 2018-19 to claim relief u/s 89 for FY 2019-20 or it is enough if assessee file only form 10E before filing ITR of FY2019-20 ?

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2 Replies

Mohan Kale (342 Points)
Replied 05 August 2020

If you have not filed returns for earlier years then there is no deffered tax liability, hence you can pay tax on salary+arrears on receipt basis as per prevailing slabs for the year and file income tax return. However, please note that due date for FY 2018-19 has been extended till 30th Sept. and hence you can still file return for that year and pay tax as per section 89 for arrears of that year (234F will be applicable).

Yudhishthir Sharma (Article) (207 Points)
Replied 05 August 2020

@ Mr. Sukhwani keyur

As per IT act, If the total income of the taxpayer is less than the basic exemption limit, then he is not liable to file ITR.
In your case, you can fill your current ITR for FY 2019-20 and claim relief u/s 89 without return filled of previous years.

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