Dear Sir/Madam,
If a pensioner receives his/her arrears of the past different financial years, how to do the rebate calculation under sec 89 (1)? For example if a person receives pension of Rs. 3,60,000/- per annum (30k per month). Consider the pensioner is a Male and his age is 65, so the tax slab is Rs. 3,00,000/-. He receives Rs. 2,00,000/- of the past 2 years (Rs. 1,00,000/- of every year). Now how to calculate the rebate amount? If the arrears belonging to one FY of the past, 1) we can re-calculate the tax liability (including and excluding arrears) of the person of that particular FY (arrears belonging to) and derive the tax amount by deducting against each other. 2) Then do the same with current AY and derive the tax amount. 3) And in the end, we deduct the current AY derived tax amount against that particular financial year's derived tax amount....... But here the arrears belonging to 2 years. So how to do the calculation? should I re-calculate the tax liability of the last 2 years like I have done above and add them all then deduct it against current AY derived tax amount? is it right? please correct me if i am wrong.
CAclubindia
