ORDER FROM MINISTRY OF RAILWAYS
GOVERNMENT OF INDIA
New Delhi, dated 22.03.2010
(1) Chief Personal Officers, 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.
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.
GOVERNMENT OF INDIA
Sub: Issue of clarification on working of relief u/s 89(1) of the Income Tax Act, 1961 – reg.
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.
BINOD KUMAR BHAGAT says
I recruit in railway on compassainate ground in C&W Depatrment as TRAINING TECH Gr.III on 27.05.05 as a basic pay 2820-70-2960.After comletion my training period,i.e 27.05.08 my basic should be 3050.My basic should be 8510/- giving three increment after 6th pc .But basic difference is not given from 01.01.06 to 30.08.08 as a arrear.
shirish korgaokar says
I am a central railway employee .why are we deprived of overtime arrears for the period between january 2006 to sept 2008?