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income tax

Querist : Anonymous (Querist) 23 December 2009 This query is : Resolved 
Gross salary of a person in financial year 2008-09 was Rs 1,30,000.His salary was not taxable so he did not file return in A.Y.2009-10.
But in this financial year 2009-10, his Gross salary is Rs 2,30,000 and he also got arrear salary Rs 20,000 of F.Y.2008-09.
He gets deduction u/s 80c is Rs 30,000 in F.y.2009-10. How much tax will he pay in A.y.2010-11. will he get relief u/s 89 for Arrear salry.
please suggest me
murtaza (Expert) 23 December 2009
u/s 89(1) you can take benefit of Rs. 2060 for that you have to give form 10E to your employer.
A V Vishal (Expert) 23 December 2009
As per the details furnished by you you can claim relief under S.89(1) to the extent of Rs.2,060 as calculated by Murtaza.
Vineet (Expert) 24 December 2009
Total tax for AY 2010-11 is Rs 6180/-

Relief u/s 89(1) Rs 2060/-

Net tax payable Rs 4120/-
Querist : Anonymous (Querist) 24 December 2009
I could not understand Relief Rs2060 u/s 89. please give me calculation of finding out relief

thanking you,
imran Ahmed
Vineet (Expert) 24 December 2009
The incremental tax and cess you are liable to pay in current year on the arrear salary of Rs 20000 is Rs 2060.

Now the incremental tax on this amount in AY 2009-10 is Nil as even after adding this amount to income received in that year, total income is below taxable limit.

That is why you get relief of Rs 2060 in current year.
soumitra basu (Expert) 24 December 2009
I do agree with all learned experts.

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