It appears that the most of the salaried persons
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 2015-16 Rs. 20,000/- in the
financial Year 2017-18 and the Total Salary Income was Rs.1,50,000/- for the
Financial Year 2015-16, then his Total Salary Income will be Rs. 20,000/- +
1,50,000/- = 1,70,000/- and the Standard Deduction is Rs. 2,50,000/-. Hence the
Total Income below the Standard Deduction, and you can get the Arrears Relief
for the Financial 3016-17, But if the Income is over Rs. 2,50,000/- than you
can not get the Relief.
If you have received arrears of salary in
Financial year 2017-18 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 2017-18 or any previous years from the
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
- Any one can operate this utility
- This Utility can Calculate Since the Financial Year
2000-01 to FY 2017-18
Click here to download Automatic Arrears Relief Calculator with Form 10E From (From the Financial Year 2000-01 to 2017-18( Up to date)
