s 89(1) with Form 10 E for the F.Y.2021-22

How to claim salary arrears relief under U/s 89 (1) | the amount paid on the basis of arrears of employment arrears, have you ever considered tax deduction U/s 89 (1)

Most of us don't know what relief is under 89(1). Most employees call it "10 E"

This article is about "How to calculate income tax on arrears of salary".

Let's understand:

What is the relief U/s 89?

Tax calculation depends on the income of the taxpayers, Salary arrear is a step of income that was getting in the relevant financial years of the previous year.

This means that the amount we will estimate in previous years is getting in the current year.

The amount owed makes your income higher and it will pull you into a higher tax slab.

Although the amount received in the current year was supposed to be received in the previous year, due to the process of the employer, you are liable for the duty, so what will happen to the tax arrears.

In this scenario, the tax department allows the assessor to reduce such inconvenience under section 89 (1) of the Income-tax Act.

To avail of the benefits of Section 89 (1), it is mandatory to fill up Form 10E.

As per Section 89(1), it is most important to make out the claim and fill the Form 10E

What is Form 10E?

To demand the amount from the previous financial year U/s 89(1) which has already paid due to arrears, it is necessary to fill the form 10 E without filling the cannot demand the previous financial year's amount. Form 10E entitled you to enter all the salary income and discount details of all years.

Download Automated Income Tax Salary Arrears Relief Calculator U/s 89(1) with Form 10 E from the F.Y.2000-01 to F.Y.2021-22 (Updated Version) as per Budget 2021