Hi Guys,
I want to know the how to calculate relief under section 89 if my client receive arrears of salary from FY 95 to FY 12-13.
I want to know calculation as well as the procedure part of it. it's urgent.
Please reply as earliest possible.
HITESH GORI (CA in practice) (148 Points)
29 November 2012Hi Guys,
I want to know the how to calculate relief under section 89 if my client receive arrears of salary from FY 95 to FY 12-13.
I want to know calculation as well as the procedure part of it. it's urgent.
Please reply as earliest possible.
CA Pintu Mishra
(Chartered Accountant- Industry)
(514 Points)
Replied 29 November 2012
Relief U\S 89 can be computed as follows:-
1- calculate the tax on the arrears received by applying the rates applicable in the AY in which it is received.
2- then calculate the tax on the income by apllying the rates which was prevailing for the years for which the income is received.(here you have got arrears from 95-96, so you will have to do the calculation for everyyear since 95 by applying the rates and taking the income accrued for the respective years)
3- difference of 1-2 would be the releif yhou would get.
Note:- while calculating the tax for earlier years education and higher seco. education cess and surcharge would be calculated.
HITESH GORI
(CA in practice)
(148 Points)
Replied 29 November 2012
Thank Pintu
I know the method but my client has received arrears from fy 95 in this type of situation we don't have enough paperwork to calculate relief.
so, now i want to know the remedies available to us.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 29 November 2012
Nicely expalined by Pintu.
I could not understand the meaning of " we don't have enough paperwork to calculate relief."
You have no other option but to abide by the law.
Regards,
CAclubindia
