Procedure for granting relief under section 89(1) of the Income-tax Act, 1961

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..... ) of the Income-tax Act, 1961, authorises grant of relief in a case where an employee receives salary in arrears or in advance or has received in any financial year salary for more than twelve months, a payment which under the provisions of section 17(3)(ii) is a profit in lieu of salary. The effect of such increase is that the income will be assessed at a higher rate than it otherwise would have .....

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..... e unexpired portion of the term of employment is also not less than three years; (d) Where the payment is in the nature of commutation of pension; (e) Where the payment is not covered by the description given in (a) to (d) above. The relief is to be worked out in the first four situations in accordance with the specific modes described in rule 21A(2)(a) to (d). 3. The authority to grant relief .....

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..... rate by adding the arrears to the total income of the years to which they relate. For this purpose, the assessee should be asked for a true and authentic statement of the total income of the earlier years to which the arrears pertain. There is no warrant for issuing a notice under section 148 or calling for returns of income of the earlier years. 5. The contents of the above circular may be brou .....

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