Excel Form 10E-Salary Arrears Relief calculator for AY 2024-25 for claiming rebate u/s 89(1)

Excel Form 10E-Salary Arrears Relief calculator AY 2024-25 (FY 2023-24) for claiming rebate under section 89(1) of Income Tax Act 1961-Download

As per section 89(1) of the Income Tax Act, 1961 relief for income tax has been provided when in a financial year an employee receives salary in arrears or advance. As per Rule 21AA of the Income Tax Rules, 1962, Form 10-E  has been prescribed for claiming the relief.

According to the said rule, in case the employee is a Government servant or is an employee in a company, cooperative society, local authority, university, institution or association of body, he/she may for claiming the relief submit the form 10E to his/her employer who is responsible for making the payment of the salary as referred to in sub section (1) of section 192 of the Income Tax Act, 1961

Excel Form-10E calculator

In all other cases, the assessee for claiming the relief should file an application in form 10E to his/her income tax assessing officer.   The relief under section 89(1) is allowable in the assessment year  in which the arrears or the advance is received by the employee.

Pay revisions particularly in Government Sector has become common. Since independence six Pay Commissions have been set up by the Government so far. Recommendations of each commission with retrospective effect have resulted in arrears of salaries. The rationale behind giving this relief under section 89 is that due to the payment of arrear or advance salary received in a given financial   year , the income of the employee for that financial year gets increased due to the amount of the arrears or advances. As a result, the income of the employee attracts taxation at a higher rate than that rate at which his income would have been taxed had there been no such arrears or advances.  

The steps involved in computing the relief under section 89(1) basically involves the following steps:

First- spread out the amount of arrears or advance received over the specific financial year to which they relate and re-calculate the income tax for each year had the arrears been received during the concerned financial year itself.

Second-calculate income tax for each of the financial years without taking into account the arrears or the advance received.

Third- deduct the total of income tax arrived at 2nd step from step-1.

Fourth-calculate income tax for the Financial year in which the arrears is received, including the arrears/advance received.

Fifth- calculate income tax for the Financial year in which the arrears is received, excluding the arrears/advance received.

Sixth- deduct income tax arrived at step-5 from  income tax arrived at step-4

Seventh- deduct income tax arrived at step-3 from income tax arrived at step-6

The figure so arrived is the amount of the relief under section 89(1)

Please note that this excel utility is for helping you to compute the relief and the details thereof are required to be filled online electronicaly.

The steps for filing online form No. 10E are as under:

1. Login to your income-tax e-filing account

2. Under efile menu go to Prepare and Submit Form Online Other than ITR

3. Select the AY and Form No. 10e

Excel Form 10E-Salary Arrears Relief calculator

4. Fill the details as computed in ABCAUS Excel utility and click on submit. Read Instructions carefully.

Excel Form 10E-Salary Arrears Relief calculator

ABCAUS calculator for working out relief is simple, automatic and a user friendly utility which calls for minimum effort and data input. Users are required to fill only data sheet and it automatically calculates relief and prepare the Form 10E, Table-A, Annexure-I. Built in instructions with examples and auto checks have been provided inside. macros must be enabled to use this utility.

Download ABCAUS Section 10E Salary Arrears Relief Calculator for AY 2024-25 (FY 2023-24)

Please note that by downloading the ABCAUS Excel Form10E, you agree to the terms of use that you do not have permission to modify, copy, edit, upload, reproduce, republish, distribute or transmit the utility except with the written prior approval. 

Download Excel 10E Calculator Version 16.3.24 AY 2024-25 Click Here >>

ABCAUS Section 10E Salary Arrears Relief Calculators for preceding previous years are as under:

AY 2023-24 Download >>
AY 2022-23 Download >>
AY 2021-22 Download >>
AY 2020-21 Download >>
AY 2019-20 Download >>
AY 2018-19 Download >>
AY 2017-18 Download >>
AY 2016-17 Download >>
AY 2015-16 Download >>

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