INCOME TAX SOFTWARE RILISE 23DEC
Understanding Calculation of Relief under Section 89(1) with Example
Let’s say Mrs Neha earned Rs 5,20,000 as total income in FY 2017-18 including Rs 1,00,000 as arrears of salary for FY 2012-
13. Her salary in FY 2012-13 was Rs 3,20,000. In this situation, the relief which Mrs Neha can claim will be as per the given
calculation.
Step 1: Tax payable on the total income including arrears, i.e. Rs 5,20,000 for the FY 2017-18 = Rs 29,870
Step 2: Tax payable on the total income excluding arrears, i.e. Rs 4,20,000 for the FY 2017-18 = Rs 15,450
Step 3: Subtracting the value obtained in step 2 from the value obtained step 1, i.e. Rs 29,870 – Rs 15,450 = Rs 14,420
Step 4: Tax payable on the total income including arrears of FY 2012-13, i.e. Rs 4,20,000 = Rs 22,660
Step 5: Tax payable on the total income excluding arrears for FY 2012-13, i.e. Rs 3,20,000 = Rs 12,360
Step 6: This step is not required in this case because arrears are related to one year & not multiple years
Step 7: Subtracting the value obtained in step 5 from the value obtained in step 4, i.e. Rs 22,660 – Rs 12,360 = Rs 10,300
Step 8: Subtract the value obtained in step 6 from the value obtained in step 3, i.e. Rs 14,420 – Rs 10,300 = Rs 4,120
People also ask
Q. Can I file Form 10E after filing my tax return?
A. It is recommended to file Form 10E before you file your tax return otherwise you may receive a notice from the tax
department for non-compliance.
Q. Do I need to attach a copy of form 10E filed online, with my Income Tax Return?
A. Since Form 10E is filed online on I-T department’s website, there is no need to attach a copy of Form 10E or any other
proof of it with your ITR.
Q. Can I get tax relief from my employer after filing tax return?
CVPRASAD
CLICK HERE TO DOWNLOAD
Let’s say Mrs Neha earned Rs 5,20,000 as total income in FY 2017-18 including Rs 1,00,000 as arrears of salary for FY 2012-
13. Her salary in FY 2012-13 was Rs 3,20,000. In this situation, the relief which Mrs Neha can claim will be as per the given
calculation.
Step 1: Tax payable on the total income including arrears, i.e. Rs 5,20,000 for the FY 2017-18 = Rs 29,870
Step 2: Tax payable on the total income excluding arrears, i.e. Rs 4,20,000 for the FY 2017-18 = Rs 15,450
Step 3: Subtracting the value obtained in step 2 from the value obtained step 1, i.e. Rs 29,870 – Rs 15,450 = Rs 14,420
Step 4: Tax payable on the total income including arrears of FY 2012-13, i.e. Rs 4,20,000 = Rs 22,660
Step 5: Tax payable on the total income excluding arrears for FY 2012-13, i.e. Rs 3,20,000 = Rs 12,360
Step 6: This step is not required in this case because arrears are related to one year & not multiple years
Step 7: Subtracting the value obtained in step 5 from the value obtained in step 4, i.e. Rs 22,660 – Rs 12,360 = Rs 10,300
Step 8: Subtract the value obtained in step 6 from the value obtained in step 3, i.e. Rs 14,420 – Rs 10,300 = Rs 4,120
People also ask
Q. Can I file Form 10E after filing my tax return?
A. It is recommended to file Form 10E before you file your tax return otherwise you may receive a notice from the tax
department for non-compliance.
Q. Do I need to attach a copy of form 10E filed online, with my Income Tax Return?
A. Since Form 10E is filed online on I-T department’s website, there is no need to attach a copy of Form 10E or any other
proof of it with your ITR.
Q. Can I get tax relief from my employer after filing tax return?
CVPRASAD
CLICK HERE TO DOWNLOAD
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