section 89

Hi Mehul,

Interesting question......!

Sec 64(1)(ii) provides for the clubbing of salary earned by the spouse of an individual.

Relief u/s 89(1) is available only in respect of salary income. The same is not denied in case of clubbing.

So, I feel it will be available but computation would be tricky.  I am not sure how it should be done but I can guess that the same should be based on the income slabs of the spouse in whose hands income is clubbed.

Agree with Amir

ok i want add one thing in it. suppose there is death of spouse in 2007 n from that onwords her income by the way of pension is added in her husabands income then can relief u/s 89 for her income is available to his husband further his husband is also a govt employee n claiming relief for his arrears

Mehul,

Definately he can claim relief, as under clubbing provisions it is not restricted.....Explanation provided by Amir is perfect... Your additional questional wont change the matter...

hi shivang

then whose slab we will consider for the calculation individual or of spouse here indiividual is also getting arrears in his personal capacity

HI Mehul,

Ur question itself is not correct........

Pension received after the death of an employee is called as "Family Pension" & the same is taxable as the income of the recipient as "Income from Other sources" & it not governed by the clubbing provisions.

Further sec 89(1) itself probides for the relief in case of arrears of Family Pension.

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.]

thanx  alot aamir

Sec.89(1) starts with the following words "Where an assessee is in receipt of a sum". As the assessee has not received the sum of money, Sec.89(1) may not be applicable, in my opinion, in the cases where the income is taxable u/s.64(1)

hi 

my query was for family pension. in that case assessee is in receipt of a sum. further it may be possible that out of last three years he may not in position to get family pension because his  spouse was alive . in that how to calculate the relief.

As it is already mentioned earlier by somebody, it applies to family pension as the same is mentioned in Sec89(1) itself.. 

When the husband is alive, there can not be any family pension. Only after his death the family pension starts accruing and hence, your question does not arise at all.