Relief under section 89(1) for arrears of salary

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


By now, you would have already figured out that income tax is calculated on the total income of a taxpayer for a certain year. The income can either be in the form of salary or family pension or other sources of income. However, there might be scenarios where you have received arrears of family pension or pending salary during the current fiscal year. It can happen that an 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.

In other words, increase the payable taxes. In such a case, an application can be made and the assessing officer can grant a relief to the Income Tax Act ensures there is parity in the income paying additional taxes, the income Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E

Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E
Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E
Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E
Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E

 To avail the benefits under Section 89(1) you would need to submit Form 10E. 

1.     Arrears of salary or 

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 Income Tax on total income of Rs. 7,50,000/- (Rs. 6,00,000+Rs. 1,50,000) including arrears for F.Y. 2017-18 is Rs. 64,375/- (as per rates applicable for F.Y. 2017-18 i.e. A.Y. 2018-19).

2.    
Income Tax on total income of Rs. 3,50,000/- (Rs. 2,00,000+Rs.
1,50,000) including arrears for F.Y. 2011-12 is Rs. 17,510/- (as per rates
applicable for F.Y. 2011-12 i.e A.Y. 2012-13).

5.    
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) with Form 10E
from the F.Y. 2000-01 to F.Y. 2019-20


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