Relief under Section 89(1) of IT Act on salary arrears

Ref. No: AIJKBOF/2020- 39                                                          Dated:  November 11, 2020

The President,

HRD Division,

Corporate Headquarters,

M.A.Road, Srinagar, Kashmir

Subject:  Relief under Section 89(1) of IT Act on salary arrears.

Sir,

Consequent upon the signing ofjoint note with regard to conclusion of discussions between IBA and different National level Officers Associations under the banner of UFBU on Salary Revision for officers on 11^th November, 2020, Wednesday at Mumbai, after MOU which was earlier signed on 22^nd of July, 2020 for an increase of 15% on the wage bill as on 31.03.2017, the workforce of the bank shall be entitled for arrears in salary for the period from 01.11.2017 till the revised salary in accordance with the above reffered to agreement is disbursed.

In this connection, to save any additional burden of tax due to delay in receiving salary in arrears, the tax laws allow a relief under section 89(1) of Income Tax Act, which in simple words mean that a person do not have to pay more taxes if there was a delay in payment to him/her and he/she was in a lower tax bracket for the year he/she received the money. You are requested to kindly take cognizance of the said relief clause of Income Tax Act while disbursing arrears to workforce.

Meanwhile, We express hope that Management of the bank has already mobilized its resources and initiated the necessary steps to ensure disbursement of revised salary from the Month of November, 2020 beside early release of arrears to boost the morale of the workforce and enable them to celebrate Diwali.

Yours Sincerely

 (Syed Jameel Qadri)

 Secretary, AIJKBOF        

Copy to

1. Vice-President HRDD, Corporate Headquarters, M. A.  Road, Srinagar Kashmir for kind information.
2. Industrial Relations Officer, Corporate Headquarters, M. A.  Road, Srinagar Kashmir. He is requested to make efforts and kindly ensure release of revised salary to the workforce of the bank from the month of November,2020.

(Syed Jameel Qadri)

 Secretary, AIJKBOF