Thursday, May 25, 2017

CONDITIONS FOR CLAIMING TAX RELIEF U/S 89




CONDITIONS FOR CLAIMING INCOME TAX RELIEF UNDER SECTION 89

1.       There is no necessity to file all previous years returns for claiming relief u/s 89.

2.      The relief u/s 89 is to be given in the assessment in which the extra payment by way of arrears, advance etc., is taxed.

3.      Basically, the relief u/s is arithmetical.

4.      It involves finding out two rates of tax.  The first is the rate of tax applicable to the total income including the extra amount in the year of receipt.  The second is finding out the rate by adding the arrears to be total income of the years to which they relate.

5.      For this purpose, the assessee should be asked for a true and authentic statement of the total income of the earlier years to which the arrears pertain.

6. There is no warrant for issuing a notice u/s 148 or calling for returns of income of the earlier years.
Note: Many defence pensioners (Specially re-employed and retired), who have received Delinking arrears are hesitating to claim relief u/s 89 because of the fear that they will be asked to file Income Tax returns for the previous years.  The above clarification is given to clear their doubts.  You can file IT return First Time & claim relief without any fear.  Once tax deducted from your pension, you have to file IT return settle the things.  You should not leave it unattended.

PLEASE CONTACT EXWEL TRUST FOR ANY ASSISTANCE IN THIS REGARD 
VISIT OUR WEBSITE FOR MORE INFORMATION
www.exweltrust.in











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