u/s 89(1) of I T

Querist : Anonymous (Querist) 27 March 2010 This query is : Resolved
sir..my client received salary arrears from year 1990-91 to 2008-09 in Fin yr 2008-09 and Deposited in his PF a/c.He was also received salary arrears in Fin Yr 1992-93 for last 4 year He was claimed at that time relief u/s 89.So,my quesion is i want to claim relief in Fin 2008-09 for salary arrear recd in 2008-09 but last taken relief in the Year 1992-93 affect my calculation.if yes give me method of caculation..

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Adv.Aiyer VLV (Expert) 27 March 2010
simple, take income returned (including previously used 89(1) relief and income with arrears spread over various years.

in case owing to income/slab rate being lower his taxability in that year is lower than taxing it in the current year (eg. current year his income may be in 30% slab. earlier with arrears spread out he may fall in 20% slab. (if such difference in tax rate does not occur or if spread out arrears increases tax slab, do not claim 89(1) relief.

Querist : Anonymous (Querist) 28 March 2010
thank u sir..i was confuse but u relaxed me in simple few but precious words..thanx again..

Kumar Thadhani (Expert) 28 March 2010
Sir,every year there are changes in Financial Budget, if one try to take income returned as a base won't help one has to go by step in calculating the actual income returned in each assessment year. SIR.