Section 89a of income tax act

NEW DELHI: The income tax department has notified forms for filing I-T returns for 2021-22 fiscal, which also seek details of income from overseas retirement benefit accounts from taxpayers. The Income Tax returns forms 1-5 have been notified by the Central Board of Direct Taxes (CBDT). Sahaj can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property and other sources (interest, etc). ITR-4 can be filed by individuals, HUFs and firms with total income up to Rs 50 lakh and having income from business and profession. ITR-3 is filed by people having income as profits from business/ profession, while ITR-5 is filed by LLPs. While the ITR-1 form has been kept broadly the same as last year, the new addition to the form was the inclusion of income from a retirement benefit account maintained in a foreign country for the calculation of net salary. It also seeks details on whether or not the said retirement benefit account was maintained in a notified country under section 89A of the I-T Act. Taxpayers can also claim relief from taxation under section 89A on this income. This will pave the way for the government technology team to develop Excel utility well in time, helping the taxpayers for early filings, AMRG & Associates senior partner Rajat Mohan said.

• Home • Karnataka Election 2023 • Budget 2023 • Market • Stock Stats • Top Gainers • Top Losers • Indices • Nifty 50 • Sensex • CaFE Invest • Commodities • IPO NEWS • Investing Abroad • IPOs • Economy • Tech • Auto • SME • Mobility • Industry • Banking & Finance • Education • Money • Insurance • Income Tax • Mutual Funds • Blockchain • Infrastructure • Railways • Aviation • Roadways • India • Defence • Lifestyle • Travel & Tourism • Health • Science • Healthcare • Brand Wagon • Entertainment • Events • Jobs • Sports • IPL 2023 • Multimedia • Photos • Videos • Audio • Web Stories • Auto Web Stories • Infographics • ePaper • Today’s Paper • From The Print • International • Edits & Columns • Opinion • FE 360 • Politics • Economy • Personal Finance Print • Front Page • FE Insight • Fe@Campus • archive By Nitesh Buddhadev There are times when employees receive a lumpsum amount for some benefits which accrue over the prior years. For example retrospective increase in salary results in salary arrears, gratuity received which is a lumpsum amount received at the end of the tenure of service but it pertains to a number of years of service to the organisation, leave encashment during the period of service which is received as lumpsum but pertains to leaves accrued in earlier years. Why investing just to save tax is not a good idea? ALSO READ | For instance, Anuradha works for Company ABC. Her monthly salary is Rs. 90,000. Company ABC credits 35 days per year as leave. In March 2022 ...

According to Section 89a of Income-tax Act, 1961 : Tax relief in relation to export turnover.—Omitted by the Finance Act, 1983 (11 of 1983), s. 33 (w.e.f. 1-4-1983). The provisions of this section were later substituted by scheme contained in section 80HHC, inserted by the Finance Act, 1983 (11 of 1983), s. 24 (w.e.f. 1-4-1983). Originally section 89A was inserted by the Finance Act, 1982 (29 of 1983), s. 22 (w.e.f. 1-6-1982).

• What is Section 89? • What is Salary Arrears? • How to Calculate Tax Relief Under Section 89(1) on Salary Arrears? • Illustration on How to Calculate Income Tax Relief? • How to Claim Relief Under Section 89 Income Tax Act, 1961? • How to File Form 10E? • What are the Consequences in the case of Non-Filing of Form 10E? • How to Calculate Income Tax on Salary? • Frequently asked questions What is Section 89? For the purpose of the Income Tax Act, income tax is levied on the total income earned or received during the previous year by the assessee. There are cases where in the past dues are paid off to the employee in the current year as salary arrears. In this case, the income tax to be paid by the employee, in this case, would be higher in the current year. This can be because of the change in the Tax relief under section 89 enables us to tackle such a situation. It provides for relief in a case where the employee is in a higher tax bracket at the time of the receipt of money for the earlier years. What is Salary Arrears? Arrears refer to overdue payments meant to be paid during a specific period. Salary arrears are overdue salaries that an employee receives from the employer. For instance, if a hike was due in August but was only paid in December. The payments received in December for the months of August, September, October and November are considered salary arrears. Thus the outstanding amount paid in the subsequent period is known as salary arrears. Furthermore, the e...

Budget 2021- Addressing mismatch in taxation of income from notified overseas retirement fund Representations have been received that there is mismatch in the year of taxability of withdrawal from retirement funds by residents who had opened such fund when they were non-resident in India and resident in foreign countries. At present the withdrawal from such funds may be taxed on receipt basis in such foreign countries, while on accrual basis in India. In order to address this mismatch and remove this genuine hardship, it is proposed to insert a new section 89A to the Act to provide that the income of a specified person from specified account shall be taxed in the manner and in the year as prescribed by the Central Government. It is also proposed to define the expression ―specified person”, as a person resident in India who opened a specified account in a notified country while being non-resident in India and resident in that country. ―Specified account” is proposed to be defined as an account maintained in a notified country which is maintained for retirement benefits and the income from such account is not taxable on accrual basis and is taxed by such country at the time of withdrawal or redemption. ―Notified country” is proposed to be defined to mean a country notified by the Central Government for the purposes of this section in the Official Gazette. This amendment will take effect from 1st April, 2022 and will accordingly apply to the assessment year 2022-23 and subseq...

By Express News Service NEW DELHI: The taxpayers will have to make additional disclosures in the Income Tax Return (ITR) forms as the government on Friday notified the ITR form 1-6. Those individuals, who make annual contribution of more than Rs 2.5 lakh in provident fund accounts, will have to mention interest earned on their PF accounts. Interest earned accrued on annual contributions to PF beyond Rs 2.5 lakh is taxable from 2021-22. The new ITR forms also require one to mention if they have any income from retirement benefit account maintained in another country while they were a non-resident of India or a resident of that country. The Section 89A of the Income Tax Act prescribes relief from taxation in income from retirement benefit account maintained in a notified country. The taxpayer will now have to mention the relief amount claimed to be reduced from gross total salary. The forms also require additional information on dividend income earned by non-resident entities, dividend income of FIIs and dividend income chargeable at tax treaty rates. The new forms require loans and advances to large shareholders (10% or more), which are deemed dividend income, to be reported separately. In ITR 2, 3, 4 and 5, one has to make additional disclosures for deduction of cost of acquisition of assets for calculation of capital gains under Section 48 of the Income Tax Act. In case of slump sale, where an entity is sold without separately taking into account the value of separate ass...

Rebates and Reliefs Chapter 8 of Income Tax Law Through this article, you can go through comprehensive knowledge and facts about provisions related to Rebates and Reliefs allowed under the Act (Chapter 8 of Income Tax Act) What is Rebate? (Section 87) • In simple terms, rebate is deduction from income tax payable • Here Income Tax Payable = Tax Payable + Cess + Surcharge + Interest (if any) – TDS • Note that: Rebate is deduction from tax payable and not from taxable income • Aggregate amount of Rebate shall not exceed Income Tax Payable in any case Rebates for Individuals (Section 87A) • Resident Individual whose total income does not exceed ₹5 lakhs is eligible for this rebate • Lower of the following shall be allowed as deduction from Income Tax Payable • 100% of Income Tax Payable • ₹12,500 Rebate on Life Insurance Premium or Contribution to provident fund (Section 88) • Indivdual and HUF with Gross Total Income (before 6A Deductions) between ₹50,001 to ₹1,50,000 will get lower of following rebates: • 20% of aggregate of sums paid or deposited towards Life insurance or Provident Funds • ₹70,000 • Indivdual and HUF with Gross Total Income (before 6A Deductions) between ₹1,50,001 to ₹5,00,000 will get lower of following rebates: • 15% of aggregate of sums paid or deposited towards Life insurance or Provident Funds • ₹70,000 • No rebate available for Individual and HUF with GTI of more than ₹5,00,000 • Individual having salary of less than ₹1,00,000 (which is more than 90%...

Rebates and Reliefs Chapter 8 of Income Tax Law Through this article, you can go through comprehensive knowledge and facts about provisions related to Rebates and Reliefs allowed under the Act (Chapter 8 of Income Tax Act) What is Rebate? (Section 87) • In simple terms, rebate is deduction from income tax payable • Here Income Tax Payable = Tax Payable + Cess + Surcharge + Interest (if any) – TDS • Note that: Rebate is deduction from tax payable and not from taxable income • Aggregate amount of Rebate shall not exceed Income Tax Payable in any case Rebates for Individuals (Section 87A) • Resident Individual whose total income does not exceed ₹5 lakhs is eligible for this rebate • Lower of the following shall be allowed as deduction from Income Tax Payable • 100% of Income Tax Payable • ₹12,500 Rebate on Life Insurance Premium or Contribution to provident fund (Section 88) • Indivdual and HUF with Gross Total Income (before 6A Deductions) between ₹50,001 to ₹1,50,000 will get lower of following rebates: • 20% of aggregate of sums paid or deposited towards Life insurance or Provident Funds • ₹70,000 • Indivdual and HUF with Gross Total Income (before 6A Deductions) between ₹1,50,001 to ₹5,00,000 will get lower of following rebates: • 15% of aggregate of sums paid or deposited towards Life insurance or Provident Funds • ₹70,000 • No rebate available for Individual and HUF with GTI of more than ₹5,00,000 • Individual having salary of less than ₹1,00,000 (which is more than 90%...

NEW DELHI: The income tax department has notified forms for filing I-T returns for 2021-22 fiscal, which also seek details of income from overseas retirement benefit accounts from taxpayers. The Income Tax returns forms 1-5 have been notified by the Central Board of Direct Taxes (CBDT). Sahaj can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property and other sources (interest, etc). ITR-4 can be filed by individuals, HUFs and firms with total income up to Rs 50 lakh and having income from business and profession. ITR-3 is filed by people having income as profits from business/ profession, while ITR-5 is filed by LLPs. While the ITR-1 form has been kept broadly the same as last year, the new addition to the form was the inclusion of income from a retirement benefit account maintained in a foreign country for the calculation of net salary. It also seeks details on whether or not the said retirement benefit account was maintained in a notified country under section 89A of the I-T Act. Taxpayers can also claim relief from taxation under section 89A on this income. This will pave the way for the government technology team to develop Excel utility well in time, helping the taxpayers for early filings, AMRG & Associates senior partner Rajat Mohan said.

According to Section 89a of Income-tax Act, 1961 : Tax relief in relation to export turnover.—Omitted by the Finance Act, 1983 (11 of 1983), s. 33 (w.e.f. 1-4-1983). The provisions of this section were later substituted by scheme contained in section 80HHC, inserted by the Finance Act, 1983 (11 of 1983), s. 24 (w.e.f. 1-4-1983). Originally section 89A was inserted by the Finance Act, 1982 (29 of 1983), s. 22 (w.e.f. 1-6-1982).