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Calculate Income Tax Relief U/S 89(1)

This calculator specifically designed for Govt Sector Employees as they are likely going to receive salary arrears in FY 16-17 for the period of FY 15-16 to FY 16-17 under 7th Pay Commission

This calculator also helps to Calculate Your Income Tax for FY 15-16 & FY 16-17

Know about - Tax Relief u/s 89(1) of Income Tax Act ,1961

If you have received any portion of your salary / pension / family pension received in arrears, you can avail tax relief u/s 89(1) of Income tax Act ,1961

Feature of this Calculator

This calculator calculates your tax liability for the FY 2015-16 (AY 2016-17) & FY 2016-17 (AY 2017-18). You can calculate / recalculate your tax liability for the previous FY 2015-16, to calculate your Tax Relief U/S 89(1)

Utility of this Calculator

Any one who have received arrears of salary / allowances / pension in the Financial Year FY 2016-17 and likes to avail tax relief u/s 89(1) (i.e. treating the amount of arrears for taxability to the period of previous financial years it pertains ) can calculate revised tax liability for the FY 2015-16.

The Govt Sector Employees are going to recieve Revised Pay as per 7th Pay Commission in FY 2016-17 with arrears on salary revision for the period of FY 2015-16 & FY 2016-17. They are eligible to avail tax relief u/s 89(1).

For this the concerened employee has to recalculate his / her tax liability for the FY 2015-16 by adding the arrear pertains to FY 2015-16 to income the income as per Tax Return Filled for FY 2015-16 and assess fresh tax liability whether it is less in comparison with treating the gross arrear as income in the yeas it is received i.e in FY 2016-17.

This calculator helps to evaluate tax outgo by bifurcation of arrears for FY 15-16 and FY 15-16. You have to provide the requisite details of income / rebates / tax paid for FY 15-16 and also the tentative gross income of the year FY 16-17. It will display the analysis of impact on your tax liability for treating the gross arrear as income for FY 16-17 over bifurcation of year pertaining to FY 15-16 & FY 16-17. If it comes in positive - means that to avail tax relief U/S 89 (1) is beneficial to you and in case it is in negative - it will be better for you to report gross arrear as income in the year it is received.

To claim tax relief U/S 89(1) the employee is required to submit his/her details in form 10(E). Click Here to Download one page Form 10E for claiming relief U/S 89(1) of Income tax Act ,1961.


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Enter Details for FY 16-17

Gross Income for FY 16-17 (Excluding Arrear)
Arrear Received Gross Arrear Received in FY 16-17
Arrear Pertains to Period FY 15-16
HRA Exempt (Click Here Calculate HRA-Exemption)
Income from Other Sources
Gross Taxable Income (With Gross Arrear)
With Arrear only FY 16-17
Rebate U/S 80C
H/L Intt.
Education Loan Intt Served/will served FY 16-17
Rebate U/S 80D - FY 16-17
Ded u/s 80CCD (Max Rs. 50,000)


Tax Calculations For FY 2016-17
Rebate + Exemptions
Taxable Income (With Gross Arrear)
Income Tax (With Gross Arrear)
E.Cess (With Gross Arrear)
Total Tax Liability With Gross Arrear

Taxable Income With Arrear only for FY 16-17
Income Tax With Arrear only for FY 16-17
E.Cess With Arrear only for FY 16-17
Total Tax Liability With Arrear only for FY 16-17

Arrear Breakups Financial Year Wise
FY 15-16FY 16-17
Gross Arrear Received / As Entered
Enter Following Details as per I/Tax Return Filed for FY 15-16
Gross Income For FY 15-16
Rebate U/S 80C - FY 15-16
H/L Intt. - FY 15-16
Education Loan Intt Served FY 15-16
Enter Tax Paid for FY 15-16
Tax Calculations For FY 15-16 with Arrear
Financial Year FY 15-16
Gross Taxable Income
Total Rebate+Exemptions
Taxable Income
Income Tax
E.Cess
Total Tax Liability
Analysis of Your Case Beneficial to claim Relief u/s 89 for FY 15-16
Additional Tax payable for FY 15-16 for Arrear
Tax Liability impact for Arrear in FY 16-17 (If Gross Arrear Accounted for in FY 16-17 Less Tax with Arrear only for FY 15-16)
Tax Impact - Are You saving Tax out go u/s 89(1)
If the result is in positive - Yes

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Gross Income For FY 12-13 Gross Income For FY 13-14 Rebate U/S 80C - FY 12-13 Rebate U/S 80C - FY 13-14 H/L Intt. - FY 12-13 H/L Intt. - FY 13-14 Education Loan Intt Served FY 12-13 Education Loan Intt Served FY 13-14 Enter Tax Paid for FY 12-13 Enter Tax Paid for FY 13-14 Additional Tax payable for FY 12-13 for Arrear Additional Tax payable for FY 13-14 for Arrear