67.calculation of Relief Under Sections 89 89A
67.calculation of Relief Under Sections 89 89A
67.calculation of Relief Under Sections 89 89A
Q1. Relief under Section 89 is allowed to an employee if he is liable to pay tax in respect
of which of the following incomes during the financial year?
(a) Arrears of family pension
(b) Gratuity
(c) Commuted value of pension
(d) All of the above
Correct answer: (d)
Explanation: Relief under Section 89 is allowed to an employee if he is liable to pay tax in
respect of Salary received in arrears or in advance, Arrears of family pension, Premature
withdrawal from a PF account, Gratuity, Commuted value of pension, and Compensation on
termination of employment during the financial year.
Q2. To claim relief under Section 89, the employee must furnish _______ before filing his
Income-tax return.
(a) Form No. 10E
(b) Form No. 10F
(c) Form No. 10AB
(d) Form No. 10AA
Correct answer: (a)
Explanation: The employee should claim relief in the return of income for the year in which
the lump sum payment is received. To do this, the employee must furnish Form No. 10E before
filing his Income-tax return.
Q3. Relief from gratuity is allowed only if the employee has completed ___________ of
service.
(a) 2 years
(b) 3 years
(c) 4 years
(d) 5 years
Correct answer: (d)
Explanation: Relief from gratuity is allowed only if the employee has completed 5 years of
service.
Q4. Relief under section 89A can be claimed by ___________.
(a) A person resident in India
(b) Any person
(c) A non-resident
(d) All of the above
Correct answer: (a)