Relief under section 89(1) for salary arrears or advances allows arithmetic tax adjustment across years. Relief under section 89(1) applies where salary received in arrears or advance or similar payments raise taxable income; Rule 21A lists five entitlement categories and prescribes computation methods for the four specific categories. The Income tax Officer grants relief in the specific cases and the Board handles the residuary case. Relief is calculated by comparing tax on income including the extra payment in the year of receipt with tax computed by allocating that payment to earlier year(s); the assessee must furnish authentic earlier year income statements and reopening notices are unnecessary.
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Provisions expressly mentioned in the judgment/order text.
Relief under section 89(1) for salary arrears or advances allows arithmetic tax adjustment across years.
Relief under section 89(1) applies where salary received in arrears or advance or similar payments raise taxable income; Rule 21A lists five entitlement categories and prescribes computation methods for the four specific categories. The Income tax Officer grants relief in the specific cases and the Board handles the residuary case. Relief is calculated by comparing tax on income including the extra payment in the year of receipt with tax computed by allocating that payment to earlier year(s); the assessee must furnish authentic earlier year income statements and reopening notices are unnecessary.
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