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
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
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)
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.