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Relief under section 89(1) for arrears of salary With Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from F.Y.2000-01 to F.Y. 2019-20 in Excel

Did you receive any advance salary or arrears of salary?Therefore, If yes, you might be worried about the Income Tax calculations of the previous year and so on? Taxpayers who have such questions in their mind, here is all that you need to know. 


Income Tax Calculator

In other words, by now, you would have already figured out that income Income Tax payer gets a part of his profit or salary in advance or as arrears in any financial year, which increases his total income thereby increase the payable taxes. In such a case, an application can be made and the assessing officer can grant a relief to the Tax Act ensures there is parity in the income

Download Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y. 2000-01 to F.Y. 2019-20

Income Tax Form 10E
Income Tax Form 10E
Income Tax Form 10E
Income Tax Form 10E

 To ensure that you are not burdened with paying additional taxes, the income Section 89(1) you would need to submit Form 10E. 

2.    Advance salary or

3.    Arrears of family pension

then such amount is taxable in the Financial Year in which it is received.

However, relief under section 89(1) is provided to reduce additional Income Tax Act, Income Tax payable on total income including arrears in the year in which it is received.

2.    Calculate Income Tax payable on total income of the year to which arrears are related, including arrears.

5.    Calculate Download All in One TDS on Salary for Govt& Non-Govt Employees for the F.Y. 2019-20 With H.R.A. Exemption Calculation U/s 10(13A) + Automated Arrears Relief Calculator U/s 89(1) with Form 10e from the Financial Year 2000-01 to the Financial Year 2019-20 + Automated Revised Form 16 Part B and Form 16 Part A&B for F.Y. 2019-20

Income Tax Calculator
Income Tax Calculator
Income Tax Calculator
Income Tax Calculator

 The feature of this Excel Utility is the following:-

1) This Excel Utility can prepare automatic Income Tax Salary Sheet for each Employee 

5) This Excel Utility calculate your House Rent Exemption Calculation U/s 10(13A)

6) Automated Income Income Tax Revised Form 16 Part B for the F.Y. 2019-20 in New Format

8) Automated Arrears Relief Calculator U/s 89(1) from the Financial Year 2000-01 to Financial Year 2019-2020 ( Updated Version)

In addition, Example on how to calculate relief under section 89(1)

Mr. A has total income of Rs. 6,00,000/- for Financial Year 2017-18 (Assessment Year 2018-19) and received arrears of Rs. 1,50,000/- for Financial Year 2011-12 (Assessment Year 2012-13). The total income for Financial Year 2011-12 is Rs. 2,00,000/-.

After that, the relief will be calculated as follows:

1.    Income Tax on total income of Rs. 6,00,000/- excluding arrears for F.Y. 2016-17 is Rs. 33,475/-

3.    Difference between (1) and (2) is Rs. 30,900/- (as per rates applicable for F.Y. 2017-18 i.e. A.Y. 2018-19).

4.    Income Tax on total income of Rs. 2,00,000/- excluding arrears for F.Y. 2011-12 is Rs. 2,060/- (as per rates applicable for F.Y. 2011-12 i.e A.Y. 2012-13).

6.    Difference between (4) and (5) is 15,450/-

7.    The amount of relief will be Rs. 15,450/- [excess amount of (3) over (6)]

What is Form 10E?

In conclusion, for claiming relief under section 89(1) for arrears of salary received, it is mandatory to file Form 10E with the Income Tax department. If Form 10E is not filed and relief is claimed, then the taxpayer is most likely to receive notice from Income Tax department for not filing Form 10E.

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