Automated Section 89(1) Income Tax Arrears Relief Calculator with Form 10E From F.Y.2000-01 to Financial Year 2018-19 [Updated Version)

HOW TO CLAIM RELIEF WHEN SALARY IS PAID IN ARREARS OR IN ADVANCE

Whereby any portion of assessee’s salary is received in arrears or in advance or by reason of his having received in any one financial year salary for more than 12 months or payment which under the provisions of section 17(3) is a profit in lieu of salary, he is hence taxed at a higher slab than that at which it would otherwise have been assessed. The Assessing Officer shall, on an Application made to him, grant such relief as prescribed. The Procedure for computing the relief is given in Rule 21.  This relief is provided in the financial year in which such arrears have been received.

Automated Income Tax Arrears Relief Calculator

The Procedure to calculate the amount of relief when salary is paid in arrears or in advance:-

STEP 1

First of all, calculate the tax payable of the previous year in which the arrears /advance salary is received on

1.Total Income inclusive of Additional Salary

  1. Total Income exclusive of Additional Salary

The Difference between 1 & 2 is the tax on additional salary Included in total Income.

STEP 2

Now calculate the tax payable of every previous year to which the additional salary relates to

  1. 3.The total Income including Additional Salary
    The Total Income excluding Additional Salary

Calculate the difference between 4 & 5 for every previous year to which the additional salary relates & aggregates them.

STEP 3

The Admissible Relief shall be the Excess between the tax on Additional salary as calculated under STEP 1 & STEP 2.

No relief if:

  • There is no excess between the tax calculated on Additional Salary (Step 1 & Step 2)
  • 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, the assessee has claimed exemption u/s 10(10C) in respect of such compensation received on voluntary retirement in the same assessment year or any other assessment year.

 WHERE AND HOW TO FURNISH INFORMATION FOR CLAIMING RELIEF

In the case where the assessee entitled to relief is a government servant or an employee in a company, co-operative society, local authority, university, association, institution, he
may furnish the particulars to his employer who is responsible for making the payment referred to in section 192(1) in specified form 10E.

In the case of other employees, the application for relief shall have to be made to the Assessing Officer instead of Employer.

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Location: Kolkata, West Bengal, IN
Member Since: 15 Feb 2018 | Total Posts: 8
I am a Graduate in B.Tech in Electrical and find a job as Electrical Engineer in the West Bengal, Also I have some knowledge in Computer and Income Tax, which guided by my Father. View Full Profile

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13 Comments

  1. Ravi Prasad says:

    Hello Taxguru,
    I and my colleagues received an amount of arrears in FY 2015-16, related to FY’s 2011 to 2015. We filed IT returns with submitting of 10E. That was clear.
    Now in the FY 2020-21, we got an arrears amount related to FY’s of 2014 to 2020.
    My question is how to split the amount of arrears recently received related to 2014-15 to 2015-16. Whether l have to show (for FY’s from 2014 to 2016) actual amount+previous arrears shown in 2015-16 form 10e+ present arrears
    or
    actual amount received in the FY+ present arrears (-relief claimed in FY 2015-16)
    Above 2 calculations seems same, but when slab changes the relief amount also is being changed. But no clarity is shown in the site.
    How to calculate if the arrears are received 2nd time to the same financial year?
    Please clarify.
    Regards

  2. C.VEERAPPA says:

    sir,
    I had received arrears of pension for last four years and now I am filing 10 E for relief. One peculiars problem arose.During last three years I have shown Agricultural income and got tax rebate
    .Now by adding the arrears the tax slab changes and when tax is calculated tax for that year is more. Fot Ex for 40000, tax relief was 2000 and in the next slab it should have been [email protected]%.But does not reflect as per the table. There will be a loss of 6000plus surcharge. How to reflect in 10E.Will you please clarify.

  3. Kavita says:

    I am retired and received arrears since AY 16/17 to-date. Filled Form 10E for each AY. But the Form does not have a column for stating the challan details for actual payment of tax. Which Challan is used for 10E tax? Kind regards, Kavita 76 years

  4. nafish malek says:

    I wish to have form 10e forAY 2019 2020,but I’m unable to get it download from your web site please help me in this regard.thanks

  5. ANJANI KUMAR SHARAN says:

    SIR,
    I Want to purchase your relief 89(1) calculator a/y 2019-20 pl send trial verson my email
    With Thanks
    A K Sharan
    Patna
    9471226358

  6. K.JAGANNADHARAO says:

    One of my friend received pension arrears after 9years and not submitted IT returns for all the previous years as he has received provisional pension which is much lower than taxable income.
    Now is he eligible for submission of form 10E and get tax relief

  7. SHEKHAR VERMA says:

    I wish to have form 10e forAY 2019 2020,but I’m unable to get it download from your web site please help me in this regard.thanks

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