Calculation of Relief under Section 89 (1) (Income tax calculation on Spreading the arrears received to the repective previous years)

Income Tax Relief under Sec 89 (1) for Arrears received during the year 2009-10
Name
Address
PAN No	Category

Income Tax Relief under Sec 89 (1) for Arrears received during the year 2009-10

Name

Address

PAN No

Category

Did you claim relief under Section 89(1) last year for 40% or other arrears? If yes, tick this check box. If No, keep the check box blank
Financial year 2005-06 (Assessment year 2006-07)	Income (Rs)
Enter Net Taxable Income for 2005-06 (as per ITR/Form-16)
Enter 40% or other arrears relates to 2005-06 if Section 89(1) claimed during last year (this field is disabled if check box above is not checked when no relief claimed during 2008-09)
Enter portion of 60% or other arrears received in 2009-10 which relates to 2005-06 (Distribution of arrears received in 2009-10 to 2005-06)
Financial year 2006-07 (Assessment year 2007-08)	Income (Rs)
Enter Net Taxable Income for 2006-07 (as per ITR/Form-16)
Enter 40% or other arrears relates to 2006-07 if Section 89(1) claimed during last year (this field is disabled if check box above is not checked when no relief claimed during 2008-09)
Enter portion of 60% or other arrears received in 2009-10 which relates to 2006-07 (Distribution of arrears received in 2009-10 to 2006-07)
Financial year 2007-08 (Assessment year 2008-09)	Income (Rs)
Enter Net Taxable Income for 2007-08 (as per ITR/Form-16)
Enter 40% or other arrears relates to 2007-08 if Section 89(1) claimed during last year (this field is disabled if check box above is not checked when no relief claimed during 2008-09)
Enter portion of 60% or other arrears received in 2009-10 which relates to 2007-08 (Distribution of arrears received in 2009-10 to 2007-08)
Financial year 2008-09 (Assessment year 2009-10)	Income (Rs)
Enter Net Taxable Income for 2008-09 including entire 40% and other arrears received (net taxable income as per ITR/Form-16)
Enter portion of 60% or other arrears received in 2009-10 which relates to 2008-09 (Distribution of arrears received in 2009-10 to 2008-09)
Financial year 2009-10 (Assessment year 2010-11)	Income (Rs)
Enter Net Taxable Income for 2009-10 without including 60% arrears or other arrears received

Did you claim relief under Section 89(1) last year for 40% or other arrears? If yes, tick this check box. If No, keep the check box blank

Financial year 2005-06 (Assessment year 2006-07)

Income (Rs)

Enter Net Taxable Income for 2005-06 (as per ITR/Form-16)

Enter 40% or other arrears relates to 2005-06 if Section 89(1) claimed during last year (this field is disabled if check box above is not checked when no relief claimed during 2008-09)

Enter portion of 60% or other arrears received in 2009-10 which relates to 2005-06 (Distribution of arrears received in 2009-10 to 2005-06)

Financial year 2006-07 (Assessment year 2007-08)

Income (Rs)

Enter Net Taxable Income for 2006-07 (as per ITR/Form-16)

Enter 40% or other arrears relates to 2006-07 if Section 89(1) claimed during last year (this field is disabled if check box above is not checked when no relief claimed during 2008-09)

Enter portion of 60% or other arrears received in 2009-10 which relates to 2006-07 (Distribution of arrears received in 2009-10 to 2006-07)

Financial year 2007-08 (Assessment year 2008-09)

Income (Rs)

Enter Net Taxable Income for 2007-08 (as per ITR/Form-16)

Enter 40% or other arrears relates to 2007-08 if Section 89(1) claimed during last year (this field is disabled if check box above is not checked when no relief claimed during 2008-09)

Enter portion of 60% or other arrears received in 2009-10 which relates to 2007-08 (Distribution of arrears received in 2009-10 to 2007-08)

Financial year 2008-09 (Assessment year 2009-10)

Income (Rs)

Enter Net Taxable Income for 2008-09 including entire 40% and other arrears received (net taxable income as per ITR/Form-16)

Enter portion of 60% or other arrears received in 2009-10 which relates to 2008-09 (Distribution of arrears received in 2009-10 to 2008-09)

Financial year 2009-10 (Assessment year 2010-11)

Income (Rs)

Enter Net Taxable Income for 2009-10 without including 60% arrears or other arrears received

Distribution of Arrears to previous years

Previous Year(s)

Net Taxable income (For calculating actual tax paid in 2005-06,2006-07,2007-08,2008-09) (2008-09 includes full 40% or other arrears received in 2008-09)

Distribution of 60% arrears to the relevant years

Total income with arrears during the relevant years (2+3)

Tax on total income without latest arrears distributed (tax on 2)

Tax on total income with latest arrears distributed (tax on 4)

Difference in tax during relevant years on account of arrears (6-5)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

2005-06

2006-07

2007-08

2008-09

Total difference in Tax on account of arrears after distributing arrears to relevant years (A)

Calculation of Income Tax Relief under Section 89 (10) during 2009-10 for 60% arrears
Net Taxable Income for 2009-10 without arrears	Total 60% arrears received during 2009-10	Total income with total 60% arrears	Tax on income without including total 60% arrears	Tax on total income including total 60% arrears	Difference in Tax on account of including total 60% arrears with income during 2009-10 (B)

Relief under Section 89(1) [A-B] Rs.

Calculation of Income Tax Relief under Section 89 (10) during 2009-10 for 60% arrears

Net Taxable Income for 2009-10 without arrears

Total 60% arrears received during 2009-10

Total income with total 60% arrears

Tax on income without including total 60% arrears

Tax on total income including total 60% arrears

Difference in Tax on account of including total 60% arrears with income during 2009-10 (B)

Relief under Section 89(1) [A-B] Rs.

Back to Section 89(1) relief calculation

Income Tax rates
Year	Male	Female	Seniors	Rate	Surcharge/Cess
2005-06	Up to Rs 1 Lakh	Up to Rs.1.35 Lakh	Up to Rs.1.85 lakhs	Nil	Surcharge @ 10% if Income >Rs. 10 lakh, edu cess @ 2% on IT
	1,00,001 - 1,50,000	1,35,000-1,50,000	----------	10%
	1,50,001-2,50,000	1,50,001-2,50,000	1,85,001-2,50,000	20%
	More than Rs.2,50,000	More than Rs.2,50,000	More than Rs.2,50,000	30%
2006-07	Up to Rs 1 Lakh	Up to Rs.1.35 Lakh	Up to Rs.1.85 lakhs	Nil	Surcharge @ 10% if Income >Rs. 10 lakh, edu cess @ 2% on IT
	1,00,001 - 1,50,000	1,35,000-1,50,000	----------	10%
	1,50,001-2,50,000	1,50,001-2,50,000	1,85,001-2,50,000	20%
	More than Rs.2,50,000	More than Rs.2,50,000	More than Rs.2,50,000	30%
2007-08	Up to Rs.1.10 Lakh	Up to Rs.1.45 Lakh	Up to Rs.1.95 lakhs	Nil	Surcharge @ 10% if Income >Rs. 10 lakh, edu cess @ 3% on IT
	1,10,001-1,50,000	1,45,001-1,50,000	----------	10%
	1,50,001-2,50,000	1,50,001-2,50,000	1,95,001-2,50,000	20%
	More than Rs.2,50,000	More than Rs.2,50,000	More than Rs.2,50,000	30%
2008-09	Up to Rs.1.50 lakh	Up to Rs.1.80 lakh	Up to Rs.2.25 lakh	Nil	Surcharge @ 10% if Income >Rs. 10 lakh, edu cess @ 3% on IT
	1,50,001-3,00,000	1,80,001-3,00,000	2,25,001-3,00,000	10%
	3,00,001-5,00,000	3,00,001-5,00,000	3,00,001-5,00,000	20%
	More than Rs.5 lakh	More than Rs.5 lakh	More than Rs.5 lakh	30%
2009-10	Up to Rs.1.60 lakh	Up to Rs.1.90 lakh	Up to Rs.2.40 lakh	Nil	Edu cess @ 3% on IT
	1,60,001-3,00,000	1,90,001-3,00,000	2,40,001-3,00,000	10%
	3,00,001-5,00,000	3,00,001-5,00,000	3,00,001-5,00,000	20%
	More than Rs.5 lakh	More than Rs.5 lakh	More than Rs.5 lakh	30%