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RULE 21A of the Income-Tax Rules is about relief when salary is paid in arrears or in advance. Usually called the Sec 89 relief, this comes into play when the employee's income is assessed at a rate higher than that at which it would otherwise have been done. A new notification from the CBDT has amended the rule to include family pension too, in its fold.

Accordingly, the Income-Tax (21st Amendment) Rules, 2002, which shall be deemed to come into force from April 1, 2002, rewrite Rule 21A(1) to begin thus: "Where, by reason of any portion of an assessee's salary being paid in arrears or in advance or, by reason of any portion of family pension received by an assessee being paid in arrears or, by reason of his having received in any one financial year salary for more than twelve months or a payment which under the provisions of clause (3) of Section 17 is a profit in lieu of salary, his income is assessed at a rate higher than that at which it would be otherwise have been assessed, the relief to be granted under Sub-section (1) of Section 89 shall be... "

What a relief to hear the `relief' word, once in a while. (Notification No 207/2002 - SO852 (E) - dated August 13, 2002)

SEZ saves

TO boost the development of special economic zone (SEZ), the CBEC has issued a notification exempting from excise levy as also additional duty.

This would be applicable to goods brought into a SEZ by its developer from factory of manufacture or warehouse situated in other parts of India, for the purposes of development, operation and maintenance of SEZ.

A few conditions have been specified such as that the developer has to be granted permission by the Development Commissioner to develop, operate and maintain the SEZ; the said goods have been authorised to be brought from the factory of manufacture or warehouse by a Committee headed by the Chief Commissioner of Customs or the Chief Commissioner of Customs and Central Excise, as the case may be, having jurisdiction over the said SEZ; and so on. A definite thrust to infrastructure. (Notification No 39/2002 dated August 13, 2002)

On guard

THE Coast Guard (Amendment) Act, 2002, which replaces the Coast Guard (Amendment) Bill, 1996, seeks to bring the provisions of the Coast Guard Act, 1978, in conformity with the provisions of the Board Security Force Act, 1968, the Army Act, 1950, the Navy Act, 1957, and the Code of Criminal Procedure, 1973. It seeks to provide for forfeiture of all pay, salvage, prize money and allowances which have become due but not paid, in addition to certain other punishments. It also increases the existing time limit from six months to two years during which trial of personnel ceasing to be subject to the Act will commence. It pays for guards to be on guard.

D. Murali

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Family pension within Section 89 relief

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