Kindly tell about income tax act rebate u/s 89 in details, weather assesses can calculate year wise calculation himself or from department. He can fill ITR BY SUBMITTING 10A TO INCOME TAX ON-LINE & GET REBATE U/S 89 .KINDLY PUBLISH THESE REBATE IN DETAILS SO THAT INDIVIDUAL ASSESSES CAN GET THE BENEFIT OF 89 ACT OF OLD ARREARS RECEIVED IN CURRENT YEARS.
1 Answers
Dear Sir,
Certain steps have to be followed to calculate relief under section 89 (1). These steps are as follows:
- Step 1: The taxpayer should find out the tax payable on his total income including arrears of the relevant previous year in which the same is received. (Ex: X)
- Step 2: The taxpayer should then find out the tax payable on his total income excluding arrears. (Ex: Y)
- Step 3: Subtract the value obtained in step 1 from the value obtained in step 2. (e., A-B) and keep the result value as Z.
- Step 4: Find out the tax payable on the total income (including arrears) of the year to which the arrears are related. (Ex: “A”)
- Step 5: Find out the tax payable on the total income (excluding arrears) of the year to which the arrears are related. (Ex: “B”)
- Step 6: Subtract the value obtained in step 5 from the value obtained in step 4 (i.e., A – B). (Ex: “C”).
- Excess of tax computed at step 3 over tax computed at step 7 is the amount of relief allowable under section 89. If tax computed at step 3 is less than tax computed at step 7 the taxpayer will not be eligible for any relief.
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