urgent answer required

Ya assessing officer can disallow depending on the case. In this case you can claim for FBT refund which u have already paid on 20%. Wait for other reply.

Sir

Please let me know the stepts for computation of relief u/s89 read with rule 21A with an example of an illustration. its urgent......... send the details to my email-id sreeevanisraor @ gmail.com

relief u/s 89(1) may be calculating as follows :

supose: (MAXIMUM EXEMPTION LIMIT FOR THE ASSESSEE IS 1,50,000)

Salary received in F.Y 08-09: 5,00,000/-

Salary received in F.Y  07-08 2,50,000/-

and you received Rs 1,00,000/- as increasd salary pertaing to F.Y  07-08 which is not taxed in    F.Y  07-08

now to compute relief follow the following steps:-

1. Compuete tax  for F Y 08-09 on Rs 5,00,000/-

2. Compute tax  for F.Y 08-09 on Rs 5,00,000/- and Rs 1,00,000/- i.e on Rs 6,00,000/- 

3. Deduct tax as calculated in Step 2 from tax calculated in Step 1

           Supose Tax in Step 1 =  (15,000+20,000) 35,000

              Tax in Step 2              = (15,000+30,000+30,000) 75,000

            Step 2- Step 1                   =         75,000-350,00  =35,000/-

4 Compute tax for F Y 07-08 on Rs 2,50,000/-

5. Compute tax for F.Y 07-08 on Rs 2,50,000 + Rs 1,00,000/- i.e total 3,50,000

6  Deduct tax as calculated in step 5 from tax calculated in step 4

    Supose      Tax in Step 4        =  (10,000) 10,000

                         Tax in Step 5        =  (15,000+10,000) 25,000

                        Step 5- Step 4        =  25,000-10,000  =15,000/-

7  Deduct Step 3  form Step 6

          i.e 35,000-15,000    =20,000

 20,000 /- shall be relief u/s 89(1)

 if balance in step 7 show negative  ( -ve) amount there is no need to claim relief

Thank u jaideep and vikas, for your timely help.

with regards,

Vani Rao.

Articled Assistant

gd & correct answeers r with u already.