There is nothing in the Income tax Act-1961 to cover the situations elaborated by you. However, the basic guiding principle is "same Income cannot be taxed twice". You can option for the mode maintioned by you in the query subject to the condition that DDO admits the same.
Basis of charge in respect of salary income is fixed by section 15 of the Income Tax Act-1961. It is chargeable to tax either on due basis or on receipt basis, whichever matures earlier. In our opinion, levy of income tax on the salary paid to you in the FY 2010-11 was as per the provision of the I.T.Act. To compensate the income tax implication on the same, you can claim relief under section 89(1) by splitting the income year wise. The required particular for relief u/s 89 is required to be worked out in Form No.10E. Section 89 gives relief to the salaried Assessee where the arrears of salary is received or the salary is received in Advance.
Basis of charge in respect of salary income is fixed by section 15 of the Income Tax Act-1961. It is chargeable to tax either on due basis or on receipt basis, whichever matures earlier. In our opinion, levy of income tax on the salary paid to you in the FY 2010-11 was as per the provision of the I.T.Act. To compensate the income tax implication on the same, you can claim relief under section 89(1) by splitting the income year wise. The required particular for relief u/s 89 is required to be worked out in Form No.10E. Section 89 gives relief to the salaried Assessee where the arrears of salary is received or the salary is received in Advance.
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