Friends, Lot of employees are getting different types of salary arrears due to any reason. The reason may be due to increase in pay scale or payment of balance salary etc. In case arrear amount relates to current financial year there is no need of 89(1) relief calculator. If arrear amount relates to Last any financial year, this excel based calculator is useful in calculating tax relief u/s 89(1). This calculator calculates tax relief w.e.f. financial year 2005-06 to financial year 2013-14.
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Relief for Income Tax
[Relief when salary, etc., is paid in arrears or in advance.
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:]
[Provided that no such relief shall be granted in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (i) of clause (10C) of section 10, a scheme of voluntary separation, if an exemption in respect of any amount received or receivable on such voluntary retirement or termination of his service or voluntary separation has been claimed by the assessee under clause (10C) of section 10 in respect of such, or any other, assessment year.]
Download Free 89(1) Calculator for Financial Year 2013-14 or Assessment Year 2014-15 (Click Here)
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