Any one who has received arrears of salary / allowances / pension 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 financial year 2017-18 to 2020-21.
The bankers & Pensioner (retired after Nov'17) on salary revision w.e.f. Nov '2017 in FY 20-21 is due to payable arrears from Nov'17 and they will be eligible to avail tax relief u/s 89(1). This calculator helps to recalculate tax liability of the respective previous years with the bifurcation amount of arrear pertaining to the respective years and assess tax liability whether there is less amount of Tax payable in comparison to the gross amount of arrear treated as income for the Financial Year 2020-21.
Click Here to know Steps to Upload Form 10E to Claim Rebate u/s 89
| Filed No. & Particulars for Form 10E - | Amount (Rs.) |
|---|---|
| 1. (a) Salary received in arrears or in advance in accordance with the provisions of sub-rule (2) of rule 21A | |
| Details required to be filled in ANNEXURE I of Form No. 10E at following Columns | |
| 1. Total income (excluding salary received in arrears or advance) | |
| 2. Salary received in arrears or advance | |
| 3. Total income (as increased by salary received in arrears or advance)[Add item 1 and item 2] | |
| 4. Tax on total income (as per item 3) | |
| If opted New Regime Tax | |
| If opted Old Regime Tax | |
| 5. Tax on total income (as per item 1) | |
| If opted New Regime Tax | |
| If opted Old Regime Tax | |
| 6. Tax on salary received in arrears or advance [Difference of item 4 and item 5] | |
| If opted New Regime Tax | |
| If opted Old Regime Tax | |
| 7. Tax computed in accordance with Table "A" [Brought from column 7 of Table "A"] | |
| If opted Old or New Regime Tax | |
| If opted Old Regime Tax | |
| 8. Relief under section 89(1) [Indicate the difference between the amounts mentioned against items 6 and 7] | |
| If opted New Regime Tax | |
| If opted Old Regime Tax | |
| Previous year(s) FY | Total income of the relevant previous year | Salary recieved in arrears or advance relating to the relevant previous year as mentioned in column(1) | Total income (as increased by salary received in arrears or advance) of the relevant previous year mentioned in column(1) [Add columns (2) and (3)] | Tax on total income [as per column(2)] | Tax on total income [as per column(4)] | Difference in tax [Amount under column (6) minus amount under column (5)] |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 17-18 | ||||||
| 18-18 | ||||||
| 19-20 | ||||||
| Total |
Please first click the button provide below Recalculate your Tax calculation. It will display your tax liability for FY 17-18 to FY 19-20 with financial years wise arrears as entered above by you to claim tax relief u/s 89(1).
Now click the second button provided here 'Click & scroll down to analyse Your Case Beneficial to claim Relief u/s 89'. It will display the calculation of your additional tax liability, if any, for the FY 17-18 to FY 19-20 to claim tax relief u/s 89(1) by treating the arrears as income to respective Financial Year.
In FY 20-21 tax payers are option provided to opt old Tax Regime i.e. can claim rebate on Investments or with to opt with New Tax Regime with lower tax rates or slabs and no tax rebates or deductions is allowed in this regime. Keeping in view of two types of tax payer may have now, we in this calculator two buttons viz. 1. 'Show Tax Impact of claim relief u/s 89(1) for Tax payee under New Tax Regime' and 2. Show Tax Impact of claim relief u/s 89(1) for Tax payee under Old Tax Regime' provided to analyse the case whether to claim tax relief u/s 89 (1) is beneficial or not and how much tax outgo can be saved if relief u/s 89 (1) is claimed
Go Top to Use this CalculatorTax is calculated on total income earned or received during the Financial Year. If total income includes any past dues paid in the current Financial Year, in such cases it might be possible that tax rates have gone up over the years or the income was less in previous years and you were may be in lower tax bracket. To save paying higher tax on such income in the current Financial Year or to save from any additional burden of tax due to delay in receiving income, the tax laws allow a relief under section 89(1) (i.e. treating the amount of such income for taxability to the period of previous financial years it pertains for this you have to calculate revised tax liability for the financial year it pertains).
To claim the benefits under section 89(1), filing of Form 10E is mandatory. This form can be filed online on the income tax e-filing portal. As per Section 89(1), tax relief is provided by recalculating tax for the year in which arrears are received and the year to which the arrears pertains; and the taxes are adjusted in the year in which they were due.
Please Note: Form 10E has to be filed before filing of the Income Tax Return.
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