Relief Under Section 89(1)

POSTED BY Maghvendra ON August 5, 2012 3:35 pm ONE COMMENT

Dear Sir
I worked for my previous employer for 3.5 years and resigned in Aug.2007. At the time of resignation I had 38 days EL as balance in my account. Out of these 19 days EL could be encashed, as I resigned from service. Another due was the arrears generated due to implementation of 6th Pay Commission.
A few months back, in the month of Dec.2011, I received amount
A = EL encashment (for 19 days), and
B = Arrears due to 6th Pay Commission (for the period from 01.01.2006 to 31.03.2007).
Now please elaborate
1. Are the amounts ‘A’ and ‘B’ entitled for relief under section 89(1)?
2. How will these calculations (separately for EL & 6th Pay Arrears) be carried out by spreading the amount to previous years?
3. What to do with Form 10E?
Regards

One reply on this article “Relief Under Section 89(1)”

  1. Dear Maghvendra, the benefit of section 89(1) ‘ll be available to you only if your income slab is changing due to addition of these arrears. If you are already in 30% tax slab for past 3-4 years, the benefit of section 89(1) ‘ll not be there for you.

    Thanks

    Ashal

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