How to calculate Arrears Relief Calculation U/s 89(1) with Automated Arrears Calculator with Form 10E Since FY 2000-01 to FY 2014-15
Click here to Download Income Tax Arrears Relief Calculator with form 10E
It
appears that the most of the salaried persons are got the salary amount from
the previous Financial Year , and after got the arrears Salary the Income have
raised in this Financial Year. But this amount which you have got this
Financial year as Salary Income, this amount not for this Financial Year
earning and this is not liable to paid the Tax in this Financial Year , as this
amount received from the financial year.
As per
the Income Tax Act 1961 the Income Tax Section 89(1) can get Arrears Relief
relevant to the previous years earning. This Section too much prominent from
the 6th Pay Commission of Central and State Employees Arrears amount
received. Previously this Section was introduce to the Tax payers only for the
get the Relief From the Gratuity as this Section also can get relief the
Arrears of Gratuity amount for the Pensioners.
Now it
is another question that most of the employees have not concept about how to
calculate the Arrears Relief or how to bifurcate the income. In this Section
89(1) it is calculate as per the Standard Deduction for the same financial
year, if the Arrears Salary Received with Arrears Received amount cross the
limit of the same financial year’s Standard Deduction, then he can not get the
Relief. For an Example :- Mr. A, received
the Arrears Salary for the financial year 2012-13 Rs. 20,000/- in the financial
Year 2013-14 and the Total Salary Income was Rs.1,50,000/- for the Financial
Year 2013-14, then his Total Salary Income will be Rs. 20,000/- + 1,50,000/- =
1,70,000/- and the Standard Deduction is Rs. 2,00,000/-. Hence the Total Income
below the Standard Deduction, and you can get the Arrears Relief for the
Financial 3013-14, But if the Income is over Rs. 2,00,000/- than you can not
get the Relief.
If you
have received arrears of salary in Financial year 2014-15 or previous any years
related to previous years then your tax
liability will be on higher side due to arrears but do you know that you can
bifurcate your income from arrears in respective years on notional basis
and can avail relief u/s 89(1) of Income tax Act 1961.
This small
excel calculator with the Automated Form 10E which will be helpful in calculate
the relief under 89(1) for arrears received in financial year 2014-15 or any
previous years up to financial year 2000-01.
This Excel Based Software can prepare and Calculate your Arrears Relief with
Form 10E.
Main
Feature of this Utility:-
- This Excel Utility Can Calculate your Arrears Relief just a moment
- This Calculator can prepare also the Annex Form 10E
- Easy to Generate and easy to install in any System
- Who can operate this utility
- This Utility can Calculate Since the Financial Year 2000-01 to FY 2014-15
- The Standard Deduction have also have in this utility you can view the Slab
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