Form 10E Relief for Arrears Calculation F.A. 2024-25

Excel Form 10E-Salary Arrears Relief Calculator for F.Y. 2024-25

The Income Tax Act, 1961, provides relief under section 89(1) to taxpayers who receive salary arrears in a particular financial year. This relief is available to offset the higher tax liability that arises due to the lump-sum receipt of salary arrears.

Eligibility for Relief

To be eligible for relief under section 89(1), the following conditions must be met:

• The taxpayer must have received salary arrears in the financial year for which the relief is being claimed.
• The salary arrears must have been earned in an earlier financial year.
• The taxpayer must have paid tax on the salary arrears in the year in which they were earned.

Calculation of Relief

The relief under section 89(1) is calculated as the difference between the tax payable on the total income of the year in which the salary arrears are received and the tax payable on the total income of the year in which the salary arrears were earned.

Excel Form 10E

The Income Tax Department has provided a pre-filled Excel form, Form 10E, to help taxpayers calculate the relief under section 89(1). This form can be downloaded from the Income Tax Department's website.

Steps to Use the Excel Form 10E

• Download the Excel form from the www.wingofeducation.com.
• Open the form and enter the required details, such as your name, PAN, and assessment year.
• Enter the details of your salary arrears, including the amount and the year in which they were earned.
• The form will automatically calculate the relief under section 89(1).
• Print the form and submit it to your employer or the Income Tax Department, as applicable.

Additional Points to Note

• The relief under section 89(1) is subject to a maximum limit of Rs. 100,000.
• If the salary arrears are received in installments, the relief can be claimed in proportion to the amount received in each installment.
• Taxpayers can also claim relief under section 89(1) for other types of income, such as gratuity and compensation received on termination of employment.

Form 10E Calculation for income Tax 2024-25

Download Section 10E Salary Arrears Relief Calculator for FY 2024-25
10E-Salary Arrears Relief calculator F.Y. 2024-25: By A.D.Chaudhari	Download(download)
10E-Salary Arrears Relief calculator F.Y. 2024-25: By Pradip Sisodiya	Download(download)

The Excel Form 10E is a useful tool for taxpayers to calculate the relief under section 89(1) of the Income Tax Act, 1961. By following the steps outlined in this article, taxpayers can ensure that they claim the correct amount of relief and avoid paying excess tax.
I hope this article is helpful. Please let me know if you have any other questions.