GConnect IT relief tool now caters senior citizens too

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Wednesday, February 17, 2010
This article is posted in Income Tax category and has 15 Comments so far.

As demanded by many of GConnect members and readers, the GConnect tool for calculating Income tax relief under Section 89(1) now caters Senior Citizens also.

The following are the provisions under Income tax Act for providing relief in respect of Arrears of income that originally due in the previous years.

The Calculation involves distribution of the arrears to the previous years.

We provide here the flow chart of this calculation

Method to calculate Relief under Section 89(1)
A=Tax for current year on the income without total arrears received this year
B=Tax for current year on the income with total arrears received this year
Additional tax on account of total arrears received this year = B-A
x1=tax for 2006-07 on the income without arrears pertaining to that year
x2=tax for 2006-07 on the income with arrears pertaining to that year
additional tax for 2006-07 on account of distributing arrears to 2006-07=x2-x1=X
y1=tax for 2007-08 on the income without arrears pertaining to that year
y2=tax for 2007-08 on the income with arrears pertaining to that year
additional tax for 2007-08 on account of distributing arrears to 2007-08=y2-y1=Y
z1=tax for 2008-09 on the income without arrears pertaining to that year
z2=tax for 2008-09 on the income with arrears pertaining to that year
additional tax for 2008-09 on account of distributing arrears to 2007-08=z2-z1=Z
Relief = (B-A)-(X+Y+Z); if you get negative value relief is nil

Click here to proceed to IT relief Tool for Senior Citizens

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15 Responses to “GConnect IT relief tool now caters senior citizens too”

  1. MCGUPTA said on Wednesday, February 17, 2010, 15:24

    While calculating tax relief under sec 89 .the table is not accepting entries for tax paid/diff etc. for Senior Citizens .Please advise the tool for calculating the same.M.C.GUPTA

    Reply

    admin Reply:
    February 17th, 2010 at 5:02 pm

    @MCGUPTA

    The details such as tax paid already etc are required for generating Income tax Statement for which GConnect provides seperate Income Tax Calculation Tool. Relief under Section 89 tool is meant for calculating relief in case of Arrears received during this year. This tool does not require the details such as tax already paid etc

    Reply

  2. gokul said on Wednesday, February 17, 2010, 15:59

    very appreciable intiative from GConnect. All the very best.

    Reply

  3. Bhupinder Pathak said on Sunday, February 21, 2010, 14:16

    Kindly confirm now whether I have to file the revised return to IT department of the arrear which has been bifurcated this year. As I have submitted Form 10E to my DDO and he will be giving the relief under section 89(1) and will be deducting the tax in this year by adjusting the tax relief which I got under section section 89(1) accordingly he will be issuing Form-16.
    Now whether we have to submit the revised ITR to the IT deparment again for all the previous years or form10E submitted to DDO is sufficient and only this year ITR as usual is to be filed.

    Reply

    admin Reply:
    February 21st, 2010 at 7:04 pm

    You need not file any revised returns for the previous years.

    Reply

    admin Reply:
    February 22nd, 2010 at 8:46 pm

    You need not file any revised return for the previous years

    Reply

  4. RATTAN said on Monday, March 8, 2010, 22:27

    Thanks for taking care of seniors for relief u/s 89(1)

    Reply

  5. V krishnan said on Friday, March 19, 2010, 14:02

    Many thanks for the calculator for senior citizens.
    For those who get advantage of distributing the arrears, please confirm that the total tax to be paid in Fin year 09-10 will be as below
    Column 5+Column 7 of annexure 1 of form 10E generated by calculator will be the total tax to be paid during the year 09-10
    Thanks again
    V Krishnan

    Reply

  6. dinesh bhatia said on Saturday, April 3, 2010, 12:13

    i was appointed as LDC in March, 88. I was given 1st acp in March, 2000. I was promoted as UDC in August, 2008 but could not availed the promotion because of transfer. again promoted at the same station in march, 2010. please tell me from which date i am entitled for 2nd ACP & in which grade pay? presently my grade pay is rs. 2400.00

    Reply

    admin Reply:
    April 3rd, 2010 at 5:08 pm

    You should get your 2nd MACP with effect from 1.9.2008

    Reply

  7. dinesh bhatia said on Monday, April 5, 2010, 8:56

    thanks for your reply, but please tell me in which grade pay i will get 2nd ACP.

    Reply

    admin team Reply:
    April 5th, 2010 at 9:39 pm

    dear bhatia
    naturally GP 2800

    Reply

  8. pc chowdhry said on Tuesday, June 8, 2010, 6:49

    “GConnect IT relief tool now caters senior citizens too”is very useful. But how about those case where the tax payer was not a senior citizens during FY 2005-06 & 2006-07 and became senior citizen during FY 2008-09. In my case, Col 5 of Table A generates 0 for FY 2005-06 & 2006-07 whereas income tax due and paid is 9040/- and 11737/- respectively. As a result the calculations are to be made manually for these two FYs. Can this situation be catered in your tool?
    An email will be gratefully appreciated. Thanks.

    Reply

  9. pcchowdhry said on Tuesday, June 8, 2010, 12:15

    Regarding relief calculator u/s 89(1), how do we calculate the relief for a tax payer who is not a senior citizen for FY 2005-06 and 2006-07, and is senior citizen wef FY 2007-08. Also the entire arrears has been received in FY 2009-10, because of the pay band anomaly. Please post a guideline. An email will be gratefully appreciated.

    Reply

    admin team Reply:
    June 10th, 2010 at 10:53 pm

    dear chowdry
    The GC tool meant for male/female only. More over in your case it is mixed with male and Senior citizen also.
    Dont worry Do like this chronologically
    1.calculate the whole tax for 09-10 (with arrears):
    2.calculate the whole tax for 09-10 (without arrears):
    3.Calculate difference between 1 & 2
    4.calculate tax for 05-06 (with arrears propotionate to that year):
    5.Write down tax paid for 05-06 (without arrears): from Form 16 of that year;
    6. Calculate Difference tax to be paid between 4 & 5
    7. Do the same thing under 4,5 & 6 for 06-07: you will get difference tax to be paid for 06-07
    8. Do the same thing under 4,5 & 6 for 07-08: you will get difference tax to be paid for 07-08;
    9. Do the same thing under 4,5 & 6 for 08-09: you will get difference tax to be paid for 08-09
    10. Add all the differences under 6,7,8 & 9
    11. Subtract result of 10 from 3- That will be the Tax Exemption you will get from the total tax under 1
    12 Attach all these details with copies of Form 16 with your ITR.
    Note apply respective rates for 05-06,06-07 rate for individual male; and from 07-08 onwards Senior citizen rate; You can use IT Calculator tool of GConnect for claculating all these and prepare your own relief calculation sheet

    Reply

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