Relief u/s 89(1) for arrear salary simplified with Excel Tool !Download it.

Central and State govt employees pay were revised in recent past on account of Sixth Pay Commission . So all govt. staff received lots of arrear payments for which now they are going to file return of Income . Naturally , one of the central concern among them is whether any  relief  from high tax on account arrear payments they received during FY 2009-10  are available. Yes, … [Read more...]

Choose date for fixation of pay under 6th pay commission !

Media reported today (6th Jul2010 ) that according to an office-memorandum issued by the Centre on Monday (5th July 2010 ) central govt. employees  have been allowed time till December to fix the base date for taking the new pay scale, from a date that is more beneficial to them. Earlier, they did not have this option as the government had fixed January 1, 2006 as the cut-off … [Read more...]

Whether gratuity received on resignation or termination eligible for exemption

As per Board's letter F. No. 194/6/73-IT(A 1) Dated 19.06.73 exemption in respect of gratuity is permissible even in cases of termination of employment due to resignation. The taxable portion of gratuity will qualify for relief u/s 89(1).The gratuity payment is a certainty in every case today. However the exemption u/s 10(10) of the income Tax Act provides exemption as … [Read more...]

Five Tax Budget Proposal Affecting You Seriously!

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Tax Slabs ExpandedNew tax labs are as underUpto 1,60,000  ExemptRs 1,60,001 to Rs 5,00,000       10 %Ra 500001 to Rs 8,00,000        20 %Over Rs 8,00,000                          30%Therefore , majority of tax payers will get some kind of relief from tax.Deduction u/s 80D  on Central Government Health SchemeTill now , deduction was being allowed … [Read more...]