Tax Exemption from Salary Arrears – Filing Form 10E in the new tax portal| With Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E for the F.Y.2021-22 (Updated Version)

Tax Exemption from Salary Arrears | How to file Form 10E in the new tax portal Let’s try to 

understand the calculation of arrears, relief dated 21.06.2021 on Sec 89 and how to file Form 10E to 

New Income Tax Portal?

Income Tax Arrears Relief Form 10 E

2. Illustration: Mr Pabir Mahato received arrears of salary in the financial year 2011-2012. The arrears are related to the salaries of FY 2017-18, FY 2018-19, FY 2019-20.

The details are as follows:

SlParticularsFinancial YearAssessment YearAmount (Rs.)Amount( Rs.)
aTaxable Salary2020-212021-22     8,00,000
bArrears  for the year2017-182018-19    75,000 
cArrears  for the year2018-192019-20  1,00,000 
dArrears for the year2019-202020-21  1,25,000 
eTotal Arrears (b+c+d)       3,00,000
fTotal Salary (including Arrears (a+e) 2021-22   11,00,000
g.Tax (including H&E Cess) on total salary including arrear ( Tax on income (f)) 2021-22    1,48,200
h.Tax (including H&E Cess) on total salary without considering  arrear ( Tax on (a)) 2021-22       75,400
iAdditional Tax due to Arrears (g-h) 2021-22        72,800

3. Reliable calculations under section 89 (1) It is advisable to make the following calculations and keep the statistics ready before filing Form 10E in the new income tax portal. The new income tax portal is giving wrong tax calculations which can be edited and corrected according to the pre-calculated amount.

SlPARTICULARSFY 2017-18           (AY 2018-19)FY 2018-19 (AY 2019-20)FY 2019-20 (AY 2020-21)
Before ArrearsAfter ArrearsBefore ArrearsAfter ArrearsBefore ArrearsAfter Arrears
aTotal Income (Rs.)575000575000600000600000675000675000
bArrears  75000 100000 125000
cTotal Income(a+b)575000650000600000700000675000800000
dDeductions150000150000150000150000150000150000
eNet Taxable Income(c-d)425000500000450000550000525000650000
fTax Liability *90131287510400234001820044200
gTaxon Arrear (tax after arrears- before arrears)38621300026000
hTotal Tax on Arrears in respective yearsIf the amount is received in respective years, the tax liability would be Rs 3862+13000+26000 = Rs 42,862 
iRelief U/S 89(1)Additional Tax Liability due to late receipts of amountRs. 72,800-42,862 = Rs. 29938/-

Download Automated Income TaxArrears Relief Calculator U/s 89(1) with Form 10-E in Excel from theF.Y.2000-01 to F.Y.2021-22 (Updated Version)

Arrears Relief Data input sheet
Income Tax Form 10 E
Arrears Relief Calculator U/s 89(1)