Section 89(1) of the Income-tax Act, 1961, read with section 8(2) of the Additional Emoluments (Compulsory Deposit) Act, 1974-Relief in cases where payment of the entire deposit is made due to extreme hardship-Treatment thereof

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....ct, 1974-Relief in cases where payment of the entire deposit is made due to extreme hardship-Treatment thereof Circular No. 239 Dated 16/5/1978 Section 8(2) of the Additional Emoluments (Compulsory Deposit) Act, 1974, provides that for the purposes of computing the total income under the Income-tax Act, 1961, the amounts repaid to an individual is deemed to be salary paid in arrears and the pro....

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.... amount, received as repayment of deposit. (b) Allocate the amount received as repayment of the years to which the deposit relates. (c) Add to the amount allocated to each year, the total income of the year. (d) Compute the tax payable on such total income for each year at the rate applicable to that year. 4. If thereafter it is found that no tax is payable as per (d) above for any of the year....