Please clarify whether relief under sec 89 of IT act can be claimed for arrears received in any particular financial year(2011-12) which was for previous financial year (2010-2011). The arrears amount has been calculated from July 2010 to February 2011 and paid in the month of April 2011. The arrears are for 8 months only and my department is saying that if arrears are for more than 12 months than only relief under sec 89 can be claimed. Please send your reply on this issue ASAP.
As per my understanding of sec 89, for arrears and advance there is no time limit but for salary for more than 12 months in a financial year one can claim relief under sec 89. please comment on this.
Thanking you
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relief under section 89 of IT Act
Replies (1)
if you remember section 89 says to calculate releief by taking last three years data in case of arrears of for gratuity or pension are for more than three years older and take two years data for any gratuity pension reciveved which are not more than 3 years older but there is also a clause that if employment is not 3 years or 2 years older in respective cases then take the data of actual period served,so in my case even 8 months arrears are good enough to take releif under seftion 89 you have to take data of previous A Y add the arrears reccived there calculate extra tax there and then add that arrears in this year and then calculate the extra tax here the diffrence between them is the relief, i have myself done in one of my clients case and i was succesful in his assment also
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