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Chapter No. 29 - Salary - Relief if Salary is received in Arrears or in Advance - Section 89(1)
Particulars | Taxable income and tax liability on “receipt basis” | Taxable income and tax liability on “receipt basis” | ||
2013-14 | 1993-94 | 2013-14 | 1993-94 | |
Salary | 10,67,000 | 50,000 | 10,67,000 | 50,000 |
Arrears of Salary | 20,000 | - | - | 20,000 |
Gross Salary | 10,87,000 | 50,000 | 10,67,000 | 70,000 |
Less: Standard deduction us/ 16(i) | Nil | 12,000 | Nil | 12,000 |
Gross Total Income | 10,87,000 | 38,000 | 10,67,000 | 58,000 |
Less: Deduction us/ 80C | 10,000 | Nil | 10,000 | Nil |
Net income | 10,77,000 | 38,000 | 10,57,000 | 58,000 |
Tax on net Income | 1,53,100 | 2,000 | 1,47,100 | 6,800 |
Less: Rebate u/s 88 | Nil | 300 | Nil | 300 |
Tax | 1,53,100 | 1,700 | 1,47,100 | 6,500 |
Add: Surcharge | Nil | - | Nil | - |
Tax and Surcharge | 1,53,100 | 1700 | 1,47,100 | 6,500 |
Add: Cess & SHEC | 4,593 | - | 4,413 | - |
Tax Liability | 1,57,693 | 1700 | 1,51,513 | 6,500 |
Tax Liability of the two AY on receipt basis 1,59,393
Tax Liability of the two AY on accrual basis 1,58,013
Tax relief u/s 89 for the AY 2013-14 (i.e. 1,59,393 – 1,58,013) 1,380
Tax payable for the AY 2013-14 (i.e. 1,57,693 – 1,380) 1,56,313
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