ITR
DA arrears for government employees
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Facts
DA arrears relating to earlier years are salary arrears, and Sec 89 relief can apply. Form 10E is needed to claim it, even if the drawing officer has computed relief while deducting TDS.
Provisions and law
- Sec 89 (now Sec 157)Relief when salary or family pension is received in arrears or in advance
- Rule 21A, Income-tax Rules 1962Manner of computing Sec 89 relief and Form 10E
Analysis
Get the year wise DA arrears statement from the office. If ₹1,20,000 relates to two earlier years, enter both in Annexure I. Relief may be small if your slab has not changed. Arrears relating to the same financial year in which they are paid do not need relief, since they are taxed in their own year.
Conclusion
- Get the arrears statement by year from the office
- Separate arrears of the current year from earlier years
- Compute relief for earlier year arrears in Form 10E
- File Form 10E and claim relief in the ITR
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