Arrears of 6th CPC and Arrears due to MACP – Claiming of relief under Sec.89(1)

ORDER FROM MINISTRY OF RAILWAYS

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No. F(X)I-2010/23/3

New Delhi, dated 22.03.2010

(1) Chief Personal Officers, All Indian Railways.
(2) FA& CAO’s All Indian Railways.

Sub:Deduction of Income Tax on account of payment of arrears of 6th Pay Commission and arrears due to MACP – Claiming of relief under section 89 (1) of the Income Tax, 1961.

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The question regarding procedure to be followed in allowing the claim of relief under section 89(1) of the Income Tax Act, 1961 on account of payment of arrears of 6th Pay Commission and arrears due to MACP is under active consideration in Board’s office.

In this regard a copy of the letter received from the office the chief Commissioner of Income Tax, Chennai by Personal Branch of Southern Railway vide No.818/CIfn/PR/2009-10 dated 21.12.2009 along with a copy of Form 10-E and its annexure, on the subject mentioned above is enclosed for information and guidance.

However, the matter is also being referred to the Ministry of Finance, Department of Revenue (CBDT) for confirmation Zonal Railways will be advised further on receipt of clarification if any, from the Ministry of Finance.

Joint Director, Finance (Exp.) – 1
Railway Board

GOVERNMENT OF INDIA
OFFICE OF THE CHIEF COMMISSIONER OF INCOME TAX
121, MAHATMA GANDHI ROAD, (Nungambakkam High Road)
CHENNAI – 600 034

C.No.818/CIfn/PR/2009-10

Date: 21.12.2009

To
The Asst. Personnel Officer (Rules)
Southern Railway
Headquarters Office
Personnel Branch
Chennai – 600 003

Sir,

Sub: Issue of clarification on working of relief u/s 89(1) of the Income Tax Act, 1961 – reg.
Ref: your letter dated 14.12.2009.

Please refer to the above.

2. you have asked for the procedure to be followed in allowing the claim of relief u/s 89(1) of the Income Tax Act. To claim relief u/s 89(1) for the arrears of salary received, the employee has to file declaration in Form 10E before the employer. The employer in turn allow the relief of tax after verification and calculate the tax deductible. The relief thus allowed is to be incorporated in the Form No.16 issued to the employee.

3. A copy of Form 10-E and its annexure is enclosed for your ready reference.

Yours faithfully,
(K.SARAVANAN)
INCOME TAX OFFICER (PR)
O/o CCIT, Chennai I, Chennai 34.