BUSINESS REVIEW

Abhijit Kamath div: A

commission. incentives of an employee of a financial year • When arrears arrises it increases the tax liability of that particular year as the exact payable tax is not payable by the employee .Tax deduction on arrears of salary decoded • Arrears means outstanding salary.

it will also reduces the TDS on salary . the tax deduction will be calculated between the entire amount of salary receivable and the actual salary received • The tax payer has to pay a lump sum amount of tax in one financial year it-self • Sec 89(1) reduces the final amount of tax payable.• Due to this inappropriate tax payment Government has launched sec 89(1) • In this section.

• As the TDS is lowered down all the employees are requested to inform their employers to deduct tax according to the form 10E • This form represents a true statement of the total income of the earlier years to which the arrears pretain • If the tax payable in the receipt year is actually less then that of amount paid in the past the no relief under sec89(1) could b claimed .

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