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 (Updated Version)

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 a 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.

According to the said rule, in case the employee is a Government servant or is an the employee in a company, cooperative society, local authority, university, institution or association of body, he/she may for claiming the relief submit the form 10E to his/her employer who is responsible for making the payment of the salary as referred to in subsection (1) of section 192 of the Income Tax Act, 1961

In all other cases, the assessee for claiming the relief should file an application in form 10E to his/her income tax assessing officer.   The relief under section 89(1) is allowable in the assessment year  in which the arrears or the advance is received by the employee.

Pay revisions, particularly in Government Sector, have become common. Since independence 7^th Pay Commissions have been set up by the Government so far. Recommendations of each commission with retrospective effect have resulted in arrears of salaries. The rationale behind giving this relief under section 89 is that due to the payment of arrear or advance salary received in a given financial year, the income of the employee for that financial year gets increased due to the amount of the arrears or advances. As a result, the income of the employee attracts taxation at a higher rate than that rate at which his income would have been taxed had there been no such arrears or advances.  

The steps involved in computing the relief under section 89(1) basically involves the following steps:

First- spread out the amount of arrears or advance received over the specific financial year to which they relate and re-calculate the income tax for each year had the arrears been received during the concerned financial year itself.

Second-calculate income tax for each of the financial years without taking into account the arrears or the advance received.

Third- deduct the total of income tax arrived at 2^nd step from step-1.

Fourth-calculate income tax for the financial year in which the arrears are received, including the arrears/advance received.

Fifth- calculate income tax for the financial year in which the arrears are received, excluding the arrears/advance received.

Sixth- deduct income tax arrived at step-5 from  income tax arrived at step-4

Seventh- deduct income tax arrived at step-3 from income tax arrived at step-6

The a figure so arrived is the amount of the relief under section 89(1).

Click here to download the Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from theF.Y.2000-01 to F.Y.2020-21

 

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Automatic Arrears Relief Calculator U/s 89(1) with Form 10E since F.Y 2000-01 to FY 2017-18

Meaning Of Arrear of Salary

If Any Part of the basic salary which was not due and taxable in the earlier year but it is received during the previous year than it is called Arrears of salary

Tax Treatment

Arrears of salary will be taxable in the receiving year but the employee can claim tax relief us 89(1)

So Today we provide Arrears Relief Calculator U/s 89(1) since FY 2000 to 2017-18 for easily calculate Arrears relief. So Download This Fantastic automatic Arrears relief calculator and calculate Arrears relief in seconds. Fill the data and get the result immediately.

If You Like this arrears relief calculator please share with your friends.

Now You Can Download arrears relief calculator u/s 89(1) since FY 2000 to 2017-18

Automatic software for form 16 (Amended) for Financial Year 2017-18 and Assessment Year 2018-19

 The benefit of this calculator

This calculator is more beneficial because we calculate directly Arrears of salary and relief under Sec 89(1). we fill data and get the result instantly

Can Any Alternate to calculate Arrears relief:-

Click to download Automatic Arrears Relief Calculator U/s 89(1) from Financial Year 2000-01 to Financial Year 2017-18 with Form 10E

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Automated Excel based Arrears Relief calculator with Form 10E for A.Y 2018-19 for claiming rebate u/s 89(1)

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.

According to the said rule, in case the employee is a Government servant or is an employee of a company, cooperative society, local authority, university, institution or association of body, he/she may for claiming the relief submit the form 10E to his/her employer who is responsible for making the payment of the salary as referred to in subsection (1) of section 192 of the Income Tax Act, 1961

In all other cases, the assessee for claiming the relief should file an application in form 10E to his/her income tax assessing officer.   The relief under section 89(1) is allowable in the assessment year in which the arrears or the advance is received by the employee.

Pay revisions, particularly in Government Sector, has become common. Since independence six Pay Commissions have been set up by the Government so far. Recommendations of each commission with retrospective effect have resulted in arrears of salaries. The rationale behind giving this relief under section 89 is that due to the payment of arrear or advance salary received in a given financial year, the income of the employee for that financial year gets increased due to the amount of the arrears or advances. As a result, the income of the employee attracts taxation at a higher rate than that rate at which his income would have been taxed had there been no such arrears or advances. 

Click here to Download Automated Arrears Relief Calculator U/s 89(1) with Form 10E From the F.Y. 2000-01 to F.Y.2017-18

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Automatic Arrears Relief Calculator U/s 89(1) with Form 10E ( Since Financial Year 2000-01 to 2017-18)

Most of the employees have get the arrears salary as their previous years, some employee have get the arrears from the Financial Year 2000-01 and on-wards financial Year, in this regard this Excel Based Software can prepare the Form 10 E from the Financial Year 2000-01 to Financial Year 2017-18. You can use this utility for calculate your Arrears Relief U/s 89(1) with Auto fill the Form 10E.

This calculator show two calculation of Income Tax ,one is on the basis of the receipt of salary/arrears and other is on the due basis of relevant years and if tax on receipt basis is more than due relevant years basis then relief under section 89(1) will be available otherwise nothing is available means no benefit in distributing the arrears in respective years.

How to Use.

1) You have to fill only White column only .after each entry an updating sign will be shown, after disappearance of the sign then only enter next data.

2) All White cell are not mandatory fill only which are required. fill zero where no figures are required 

Section 89. Where an assessee is in receipt of a sum in the nature of salary, being paid in arrears or in advance or is in receipt, in any one financial year, of salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, or is in receipt of a sum in the nature of family pension as defined in the Explanation to clause (iia) of section 57, being paid in arrears, due to which his total income is assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer shall, on an application made to him in this behalf, grant such relief as may be prescribed

Specified DDO CAN ALLOW RELIEF U/s 89(1)

Following employer may allow benefit u/s 89(1) if claimed by employee.

1.company,

2.co-operative society,

3.local authority,

4.university,

5.institution,

6.association or body

7.Govt State or center

8.Public sector undertaking

Click to Download Arrears Relief Calculator with form 10E from F.Y. 2000-01 to  2017-18

Main Data Input Sheet

Automated Form 10E Annexute 1

Automated Form 10E

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