As per section 89(1) of the Income Tax Act, 1961 relief for income tax has been provided when in a financial year an employee receives the salary in arrears or advance. As per Rule 21AA of the Income Tax Rules, 1962, Form 10-E has been prescribed for claiming the relief.
Showing posts with label How to calculate income Tax Arrears Relief Calculator U/s 89(1). Show all posts
Showing posts with label How to calculate income Tax Arrears Relief Calculator U/s 89(1). Show all posts
Friday 23 March 2018
Wednesday 19 July 2017
Sunday 29 January 2017
Have you received any Salary Income as arrears this year? As per Income Tax Act, salary income pertaining previous years which is received as arrears this year has to be included in the total income. However, the taxpayer has an option to distribute these arrears to relevant years if such distribution is beneficial in the form of tax savings. Section 89 of Income Tax read with Rule 21 A of Income Tax Rules specifies the procedure for calculation of Income Tax Relief in this case.
Income Tax Relief so calculated has to be declared by the employee to Pay drawing authority (DDO) who is responsible for deducting income tax on salary, in the format described under Form 10E.
Download Automatic Excel Based Arrears Relief Calculator U/s 89(1) with Form 10E from the f.Y.2000-01 to F.Y.2016-17
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