Download Auto Calculate Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E for the
F.Y.2023-24 and A.Y.2024-25 with Deduction from Salary Income (Section 16)
According to Section 89(1) of the Income Tax Act, 1961, relief for income tax is available in the financial year when the salary is received or received in advance. Under Rule 21AA of the Income Tax Rules, 1962, Form 10-E is filed for claiming relief.
According to the Act, either a public servant or an employee of a society, co-operative society, local authority, university, institution, or corporate body, can file Form 10E for claim relief. An employer is liable for payment of wages as defined in sub-section (1) of section 192 of the Income-tax Act, 1961.
In some cases, the investor claiming relief has to file an application in Form 10E with the Income Tax Assessing Officer. Relief under section 89(1) is recognized in the assessment year in which the debts or advances are incurred by the employee.
The main reason for providing this relief under section 89 is that for arrears or prepayment of salary received in a particular financial year, the employee’s income for that financial year is enhanced for the arrears or advances. As a result, an employee’s income attracts taxes, without such obligations, the income would be taxed more
The amount payable under the head "Salary" is calculated after making the following deductions under section 16:
• Reduce the regulatory framework;
Reduced access to entertainment; and
• Employment tax.
1. Standard deduction [sec.16(i)/(ia)] of the Act.
• Standard discount is Rs. 50 000; either
• The amount of wages,
• Where is it at the bottom?
2. Entertainments Allowances [sec.16(ii)]
Entertainment Allowance is included in the under the head ‘Salary’ and deducted on the norms mentioned in the following manners:
(A). In the case of a civil servant (meaning a State or Government official), the lesser of the following shall be excluded:
Rs. 5000 and;
20% of basic salary; either
Amount of Entertainment Allowance granted in the previous year.
To determine the value of tax-exempt entertainment, the following factors should be considered:
For this purpose, “compensation” does not include allowance, compensation, or other perquisites.
Expenditure on entertainment (including entertainment income) is not considered.
B). In the case of a non-public employee (including employees of statutory corporations and local authorities), :
3. Professional
Tax or service tax [sec. 16(iii)]
Professional or service tax levied by the State under section 276 of the Constitution is allowed as a deduction.
The
given below norms should be fulfilled.
1. The Professional Tax is less only in the year in which the P.Tax is paid.
2. According to Section 276 of the Constitution, the state government cannot provide more than Rs.2500 per annum as service tax. According to the Income Tax Act, any service tax paid during the previous year is deductible.
Features of this Excel utility:-
1) This Excel utility perfectly prepares your income tax according to your U/s 115BAC option.
2) This Excel utility has a completely revamped Income Tax section as per Budget 2023
3) Computerized Income Tax Form 12BA
4) Automatic computation Income Tax Exemption rented house U/s 10(13A).
5) Individual salary structure according to government and private group salary model
6) Individual Pay Sheet
7) Individual tax datasheet
8) Automatic Income Tax Form 16 Part A&B revised for the financial year 2023-24
9) Automatic Income Tax Form 16 Part B revised for the financial year 2023-24
