Income Tax :- 89(1) Calculator with Form 10E for the Financial Year 2017-18

Friends,   

                 On demand , for getting rebate of 89(1) on account of bifurcation of salary arrear for the Financial Year 2017-18 Assessment Year 2018-19 has been prepared.  

                Utility of this excel sheet is that an individual can avail Income Tax benefit for the amount of arrear of Previous Years received in this year.    This utility is based on Financial Year 2005-06 to Financial Year 2017-18. 

How can Use of 89(1) Calculator 

1. Simple in use. 
2. Collect copy of ITR-V for the financial years for which arrear is to be bifurcated.
3. Current Year earning details like salary statement etc. 
4. Current Year detail of savings.

Now Download 89(1) Calculator free of cost and save your income tax yourself.. 

Income Tax :- Procedure to Claim relief u/s 89(1) or How to upload 10E form

Friends,  Income Tax Department has disallowed relief u/s 89(1) which was claimed by Assessee during his/her filing of Income Tax Return for the Assessment Year 2015-16.   Earlier there was no doubt in claiming such relief  upto A.Y. 2014-15 from Income Tax Department. Simply Assesee claims in ITR form and Income Tax Department allows the same as claimed by Assessee.  

                But now, w.e.f. Assessment Year 2015-16, It is compulsory  to upload online 10E form otherwise claim will be rejected and demand will be raised by I.T. Department. 

                All  Assessees who had claimed rebate u/s 89(1) in the A.Y. 2015-16 have been informed by Income Tax Department through intimation order under section 143(1) that claim amount of rebate has been rejected and raised demand alongwith interest for the same. 

Procedure to upload 10E Form

                 After reading above content it is clear without uploading 10E form , relief under section 89(1) can not be claimed.  Now question is that how can we upload 10E Form alongwith ITR-1 (Sahaj), ITR-2  etc Forms.

                    After a time gap, it has been found that 10E form is not ITR forms.   10E form is other that ITR form which is available in income tax website  after login for efiling of  incometaxindiaefiling.gov.in as shown in below picture. 

                

Click here to download free calculator relief u/s 89(1) or generation of 10E forms

Income Tax Rebate u/s 89(1) Calculator updated on 25/07/2014

Friends  It has been noticed that there was an error in calculation for those employees who have total income exactly Rs. 5,00,000.00 in the financial year 2013-14 or in financial year 2014-15.   This calculator was not allowing rebate of Rs 2000/- under section 87A for those who are getting exactly total income Rs. 5 Lakh, but allowing rebate Rs. 2000/- who are getting total income less than 5 Lakh.  Now the same has been updated. 

Download is available here 

Income Tax Relief Calculator 89(1) updated according to Tax Slabs.

Friends,   Everyone knows that Income Tax Slabs have been changed in the Financial Year 2014-15 or Assessment Year 2015-16 with the following changes :-

1.  Basic Tax exemption   2 lakh to 2.50 lakh for individual  

                                        2.50 lakh to 3.00  for senior citizen. 

2.  Saving u/s 80C            1 lakh to 1.50 lakh and investor can also invest in PPF upto 1.50 lakh in a year.

3.  Interest on Housing Loan    1.50 lakh to 2 lakh. 

In the above, Point No. 1 effects the 89(1) relief calculation for those employees who have received arrears in the financial year 2014-15.  Therefore the same has been updated in 89(1) relief  calculator with new income tax slabs. 

Download free excel based 89(1) relief calculator for the Financial Year 2014-15  with new Tax Slabs. 

Download 

(In case any error found in above calculator, please inform through email at easyjain@gmail.com for earliest updation)

Income Tax :- 89(1) Relief Calculator for the Financial Year 2014-15 or Assessment Year 2015-16

As the Financial Year 2013-14 is going to close.   Therefore 89(1) relief calculator is required for the Financial Year 2014-15.  We have uploaded Calculator to calculate relief Under section 89(1) of the Income Tax Act, 1961 in respect of Arrears of salary received during the financial year 2014-15.  The Calculator will calculate relief if any which Assessee can claim U/s. 89(1) in respect of salary received in Financial Year 2014-15 pertaining to prior years. This Calculator will calculate the Relief for Arrears received pertaining to the period from from 01.04.2005 to 31.03.2015 The Calculator also automatically Fills Form 10E with its annexure with the help of  Table A Automatically. We have already uploaded  calculators which will calculate relief U/s. 89(1) in respect of arrears of Salary Received  pertaining to financial year 2010-2011, 11-12 to 2013-14.

Please visit at here to download the latest or earlier calculators. 

Income Tax : -Major updation in 89(1) relief calculator for F.Y. 2013-14

Friends,

            Major updation in 89(1) tax relief calculator has been done for women.   Earlier this calculator is calculating Income Tax on the basis of Senior Citizen category on selecting Women category in the Financial Year 2012-13.  The users of this calculator has informed this error and the same has been got updated immediately.   All credit of the same goes to it's users.  

• To download 89(1) Relief or 10E Calculator for Assessment Year 2014-15 (Click Here)

          Lot of persons do not know regarding benefit of 89(1) relief.  It is useful for salaried persons who receive his salary in arrears or in advance.  The complete detail as per income tax act is given below :-

B.—Relief for income-tax]

⁵⁴[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 salary⁵⁵, 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 prescribed⁵⁶:]

⁵⁷[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) ofsection 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.]

Income Tax :- Income Tax relief under section 89

Who can avail income tax relief under section 89 ?

              An individual receives any potion of his salary in arrears or in advance or receives profit in lieu of salary, he can claim relief in terms of section 89 read with rule 21A.   The relief is also available in respect of family pension received in arrears. 

Computation of relief when salary or family pension has been received in arrears or in advance [Rule 21A(2)]

          The relief on salary received in arrears or in advance (hereinafter to be referred as "the additional salary") is computed in the manner laid down in rule 21A(2) as under :

• 1. Calculate the tax payable on the total income, including the additional salary of the relevant previous year in which the same is received. 
• 2. Calculate the tax payable on the total income, excluding the additional salary of the relevant previous year in which the same is received. 
• 3. Find out the difference between the tax at (1) and (2). 
• 4. Compute the tax on the total income after excluding the additional salary in the previous year to which such salary relates. 
• 5. Compute the tax on the total income after including the additional salary in the previous year to which such salary relates. 
• 6. Find out the difference between the tax at (4) and (5).
• 7. The excess of tax computed at (3) over the tax computed at (6) is the amount of relief admissible under section 89(1).   No relief is, however, admissible if the tax computed at (3) is less than the tax computed at (6).   In such a case, the assessee-employee need not apply for relief. 

Computation of relief in respect of gratuity [Rule 21A(3)]

          Under section 89(1), a relief can be claimed if gratuity is received in excess of the limits specified in para 12.2.   However, no relief is admissible if taxable gratuity is in respect of services rendered for less than five years.   Cases in which the relief is admissible may be divided into two categories, namely, (i) where the gratuity payable is in respect of past service of 15 years or more; and (ii) where such period is 5 years or more but then than 15 years.   Relief in a case belonging to the first category is worked out as under :

• 1. Compute the average rate of tax on the total income including the gratuity in the year of receipt.
• 2. Find out the tax on gratuity at the average rate of tax computed at (1) above. 
• 3. Compute the average rate of tax by adding one-third of the gratuity to the other income of each of the three preceding years. 
• 4. Find out the average of the three average rates computed in the manner specified in (3) above and compute the tax on gratuity at that rate. 
• 5. The difference between the tax on gratuity computed at (2) and that at (4) will be relief admissible under section 89(1). 

          In cases covered under the second category, the relief is computed on similar lines as above with the only difference that instead of average of the average rates of the preceding three years, the average of the rates of the preceding two years is computed by adding one-half of the gratuity to the other income of each of the preceding two year. 

Computation of relief in respect of compensation on termination of employment [Rule 21A(4)]
           If compensation is received by the assessee from the employer or former employer at or in connection with termination of his employment after continuous service for not less than 3 years and where the unexpired portion of his term of employment is also not less than 3 year, the relief is calculated in the same manner as if gratuity was paid the employee in respect of service rendered for a period of 15 years or more.   Compensation received at the time of voluntary retirement from service would be regarded as salary and relief under section 89 would be admissible in respect of said amount.

Computation of relief in respect of payment in commutation of pension [Rule 21A(5)]
                  A relief can be claimed in respect of payment in commutation of pension received in excess of the limits mentioned in pension under section 17(i)(ii) .   Such relief is computed in the same manner as if gratuity was paid to the employee in respect of service rendered for a period of 15 years or more.

Computation of relief in respect of other payments [Rule 21A(6)]
                    In respect of payment received by the employee other than those mentioned in (Computation of relief when salary or family pension has been received in arrears or in advance [Rule 21A(2)] and Computation of relief in respect of payment in commutation of pension [Rule 21A(5)] above, the relief under section 89(1) will be granted by the Board after examining the circumstances of each individual case.

 Procedure for claiming the tax relief. 

        In order to claim tax relief under the aforesaid circumstances the assessee should send an application on plain paper to the concerned Assessing Officer.  In the absence of any specific time limit for such application,  it may be submitted at the time of filing the return of income. 

      Basically, the relief under section 89 is arithmetical.   It involves finding out of two rates of tax.   The First is the rate of tax applicable to the total income including the extra amount in the year of receipt.   The second is finding out the rate by adding the arrears tot he total income of the years to which they relate.   For this purpose, the Assessing Officer should ask for a true and authentic statement of the total income of the earlier years to which the arrears pertain.   There is, therefore, no warrant for issuing a notice under section 148 or calling for returns of income of earlier years- Circular No. 331, dated March 22, 1982.

• To Download free 89(1) Relief  or 10E Excel based Calculator for Assessment Year 2014-15 & others (Click Here)

Income Tax :- Free Income Tax Individual Calculator

Friends,   In a organisation,  Excel Based Income Tax Calculator is required to calculate Income Tax of their each employee.   Before completing the financial year,  tax calculation is  required again and again due to saving of employees and receipt of arrears etc.  Keeping in view these things the following excel based calculator is provided totally free of cost.  In the following not only Tax Calculator but also calculator for calculating 89(1) relief for arrears is also provided. 

• F.Y.2013-14, A.Y.2014-15 Income Tax Calculator with New Form 16 for individuals  (Download)

Income Tax :- Download Free Excel Based 89(1) Relief Calculator for Assessment Year 2014-15 or Financial Year 2013-14

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.

 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)

To download last year free Calculators (Click Here)

Salary- No Relief under section 89 under some circumstances.

Friends,   W.e.f. Assessment Year 2010-11, no relief is available under section 89 in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service or voluntary separation of service if the employee has availed the exemption of compensation of voluntary retirement under section 10 (10C). 

Section 10(10C)

[10C) 73any amount received74 75[or receivable] by an employee of—

 (i) a public sector company ; or
 (ii) any other company ; or
(iii) an authority established under a Central, State or Provincial Act ; or
(iv) a local 76[authority ; or]
77[(v) a co-operative society ; or
(vi) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956) ; or
(vii) an Indian Institute of Technology within the meaning of clause (g) of section 378 of the Institutes of Technology Act, 1961 (59 of 1961) ; or

79[(viia) any State Government; or]


80[(viib) the Central Government; or]


81[(viic) an institution, having importance throughout India or in any State or States, as the Central Government may, by notification in the Official Gazette82, specify in this behalf; or]


(viii) such institute of management as the Central Government may, by notification83 in the Official Gazette, specify in this behalf,]


          84[on his] 85[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), a scheme of voluntary separation, to the extent such amount does not exceed five lakh rupees] :


            Provided that the schemes of the said companies or authorities 86[or societies or Universities or the Institutes referred to in sub-clauses (vii) and (viii)], as the case may be, governing the payment of such amount are framed in accordance with such guidelines (including inter alia criteria of economic viability) as may be 87prescribed 88[***]:


         Provided further that where exemption has been allowed to an employee under this clause for any assessment year, no exemption thereunder shall be allowed to him in relation to any other assessment year :]


        89[Provided also that where any relief has been allowed to an assessee under section 89 for any assessment year in respect of any amount received or receivable on his voluntary retirement or termination of service or voluntary separation, no exemption under this clause shall be allowed to him in relation to such, or any other, assessment year;]

10 E form for the Assessment Year 2013-14 or Financial Year 2012-13

The persons who has received any salary arrears in the Financial Year 2012-13 and want to save Income Tax through claiming relief  under section 89(1).  Easy and Fast calculations are available for generating 10E form for the Assessment Year 2013-14.   

Only white cell are to be filed and calculator will generate 10E form automatically. 

Download 89(1) Calculator for Assessment Year 2013-14 (Click Here)

B.—Relief for income-tax]

⁶⁹[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 prescribed⁷⁰:]

⁷¹[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) ofsection 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.]

Form 10E or Relief u/s 89(1) for Financial Year 2011-12 or Assessment Year 2012-13

The persons who has received any salary arrears in the Financial Year 2011-12 and want to save Income Tax while claiming relief  under section 89(1).  Easy and Fast calculations are available for generating 10E form for the Assessment Year 2012-13.   As Income Tax Returns forms are already ready to upload Salary Returns in Form ITR-1 (Sahaj) form.  

Only white cell are to be filed and calculator will generate 10E form automatically. 

Download 89(1) Calculator for Assessment Year 2012-13 (Click Here)

B.—Relief for income-tax]

⁶⁹[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 prescribed⁷⁰:]

⁷¹[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) ofsection 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.]

89(1) Relief Calculator (Excel Based)

Friends

Calculate Tax  Yourself on Your bifurcated arrear get Tax Relief u/s 89(1) 

                 As Government employees are receiving  arrears of 6th Pay Commission.  They are paying Income Tax on their salary + arrears.  They can save income tax via bifurcation of  his arrear amount year wise w.e.f  2005-2006. 

Instructions of using this calculator

1)     Download attached zip file. It is totally free for personal use.

2)     Only white cells are for data entry.

3)     Yearwise Salary w.e.f. 2005-06 are to be filled in white cell

4)     Year wise amount of Arrears are to be filled in white cells

5)     Name of Employees, Designation, Department can be filled in Table "A"

6)    Default Sex is Man. But it can be changed for Man, Women or Sr. Citizen  can be selected  placing M =Man, W= Women, S = Sr. Citizen

                                For Download for 89(1) relief and another important Calculators like as Income Tax Calculator w.e.f. F.Y. 2005-06, Saving Bank Interest Calculator, House Rent Allowance Calculator, Post Office R.D. Interest Calculator , NSC Interest Calculator, Disallowed Salary/Remuneration Calculator, Depreciation Calculator , EmI Calculator, Bank Loan Interest Calculation Calculator, .Click Here

Specially, Arrear Calculator (Click Here)

Rebate u/s 89(1)

Friends,

Tax relief when salary received in arrear or in advance

As the arrear of salary relates to 6th pay commission is being received by the employees. When a person/employee receive arrear or any advance in a financial year , he should collect complete information from their employer like as year wise amount of arrear/advance. If you have year wise amount of arrear then you can bifurcate your income year wise. In this way you can save income tax on your income under section 89.

Who is eligible to allow relief u/s 89 (1) Some specified DDO's can allow relief under section 89(1) . List of employers who can allow benefit u/s 89(1), if claimed by employee, is given as under :-

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

Complete detail regarding section 89 is given as under:-

⁴⁵[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 prescribed⁴⁶.]

The following proviso shall be inserted in section 89 by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010 :

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.

Income Tax Calculator (Year wise w.e.f. F.Y. 2006-2007) (Click Here)

Generate form 16a from fvu file with in minutes (Click Here)

Check New TDS Rate (Click Here)

Download Form 16A in Excel Format with filling procedure (Click Here)

Download Income Tax Calculator A.Y. 2010-11 (Click Here)

Calculate your year wise Income tax w.e.f. A.Y. 2002-2003 (Click Here)