Salary Arrears Relief Calculator U/s 89(1)| If you received arrears of salary/pension in the previous financial year 2121-22, your tax liability will increase due to arrears, but did you know that you can double your income from arrears? You can get relief on 89 (1) of the Year and Income Tax Act, 19 of 1 on a conceptual basis.
We have developed a unique Excel-based calculator which will be helpful to calculate relief under Section 89 (1) of the Autofill Form 10E for recovery of arrears received in F,Y 2021-22 and the arrears are the oldest till the financial year 2000-01.
This calculator used for offline use.
How it works
This calculator calculates both sides that are a present financial year and also the past/relevant financial year. , relief will be available under section89 (1) otherwise nothing is available. There is no benefit in distributing arrears over the years.
Terms of use. Note / Calculator usage questions
All you have to do is fill in the white column. If the bucket corresponds to a few years compared to the year provided on the sheet, fill in the blanks in other unnecessary years.
All white cells are only necessary which is not mandatory to fill. Fill in the blanks where no image is required
Select the option as new or old tax under section 115 (calculator is not working for very senior citizens). You must select the status each year. Make sure the status is selected correctly
Fill in the total income with all other income and excluding arrears such as Section 80C, 80cc, 80D, 80G ... 80U, etc. after all discounts
Fill in the arrears for the year 2021-22 under the corresponding year. The total will automatically appear under F.Y 2021-22.
The arrears column (C-11 of the calculation sheet) is protected and cannot be edited under FY 2021-22. If you receive arrears with F.Y 2020-21 then it is not covered by the definition of arrears and F.Y 2020-21. Inclusion of total income (C-10 of the calculation sheet).
The result is out if the total is A> Total B, relief will be shown under section 89 (1), otherwise, 0 will be displayed. in Form 10 E, more forms with relevant additions will be filled automatically with Table-1
Limitations
1. The calculation of long-term capital gain is not covered in this calculator. So if you have any LTCG in previous years that need to be calculated, this calculator will not help you.
2. Income tax at special rates like a tax on short-term capital gains on equity shares/securities also does not fall under this calculator.
